2016 GROWTH INCENTIVES FAQs

Transcription

1 2016 GROWTH INCENTIVES FAQs The Amway Growth Incentives Program (GI Program) is a collection of discretionary programs separate from the IBO Compensation Plan that can vary from year to year. IBO eligibility for the GI Program is at Amway s discretion. The GI Program is available only to IBOs whose conduct demonstrates high ethical and business standards aligned with the goals and objectives of Amway and its related businesses GROWTH INCENTIVES PROGRAM GENERAL QUESTIONS...1 BASELINE REQUIREMENTS...3 TWO-TIME CASH AWARDS...5 PLATINUM PLUS MONTHLY CASH AWARDS...7 Q7 Q11 MONTHLY CASH AWARDS...8 Q12 CASH AWARDS...9 LEADER DEVELOPMENT CASH AWARDS...12 FAST TRACK INCENTIVE PROGRAM ENHANCED...16 BUSINESS CONFERENCE QUESTIONS...16

2 GENERAL QUESTIONS Q. What s new in 2016? This is the second year of a 3-Year Growth Incentive Program that was first introduced September 1, 2014 (FY2015). This program continues to simplify rules, increase bonus amounts, and reward business growth. Key highlights remain: The Comeback Platinum Incentive that encourages pin Platinums who have fallen out of qualification, in FY2015 to requalify. The Q7-11 monthly incentive that rewards non-q12 Platinums for growing from 6-month qualifiers to 12-month qualifiers on their way to Q12. The Fast Track Incentive Program that is open to all IBOs each year. A simplified and more profitable Q12 Cash Award. The Two-Time Cash Awards now also rewarding first-time Gold Producers through Founders Diamonds for qualifying and requalifying the very next year. New in 2016: Enhancements to the Leader Development Awards Solidification Awards of 75% and 50% for requalifying in years 2 and 3. Now, increase ANA FAA points by at least.5 points over prior year beginning at 60 Qs. There will no longer be any Topping Up Adjustments for ANY GI Annual Bonuses or qualifications. At a minimum of 60 frontline Qs, maintain 7,500 Personal Group/RUBY for all 12 months of the fiscal year (90,000 annually) to qualify for growth level awards. (See page 16 for all the details for this incentive.) NOTE: IBOs must either maintain or grow over their previous year s Q baseline. No Leader Development Cash Award will be paid if the number of Qs is lower than the previous year s baseline regardless of meeting any of the growth requirements above. Q. How long will the 2016 Growth Incentive (GI) Program be in effect? The GI 2016 Program is part of a 3-year Growth Incentive Program that started September 1, 2014 (FY2015) and will run through August 31, 2017 (FY2017). The Amway Growth Incentives Program is a discretionary program and Amway reserves the right to change/enhance the program as appropriate throughout its duration. Q. What is Award Volume? Award Volume includes your personal PV plus pass-up volume from downline non-25% legs. Award Volume includes pass-up from downline Platinums in those months that are not qualified at 25%. IBOs were considered active in months in 2013 when they attempted to make a retail sale, or presented the Amway Independent Business Owner Compensation Plan (IBO Compensation Plan), or received bonus money, or attended an Amway or IBO meeting. If someone sustained that level of activity every month for a whole year, their annualized Gross Income would be $2,196 (U.S.)/$2,472 (Canada). Of course, not every IBO chooses to be active every month. Gross Income means the amount received from retail sales, minus the cost of goods sold, plus monthly bonuses and cash incentives. It excludes all annual bonuses and cash incentives, and all non-cash awards, which may be significant. There may also be significant business expenses, mostly discretionary, that may be greater in relation to income in the first years of operation. For the purposes of the calculation in Canada, individuals who were IBOs for less than the entire year in 2013 were excluded. The IBO Compensation Plan offers monthly and annual bonuses that IBOs can earn in accordance with their contract with Amway. IBOs also may qualify for the Amway Growth Incentives Program (GI Program), a collection of discretionary programs separate from the IBO Compensation Plan and that can vary from year to year. IBO eligibility for the GI Program is at Amway s discretion. The GI Program is available only to IBOs whose conduct demonstrates high ethical and business standards aligned with the goals and objectives of Amway and its related businesses. Following are approximate percentages of IBOs in North America who achieved the illustrated levels of success in the IBO Fiscal Year ending August 31, 2014; New IBO Incentive Award (52.3%), First Step Award (4.3%), Balanced Sponsor Award (2.9%), Program Plus Award (0.53%), Mentor Award (0.074%), 144Q and above (0.001%), 21 FAA and above (0.006%). For more details on qualifying for the GI Program and other requirements, see information on Amway.com or contact Amway Sales. Before registering as an IBO, individuals should read and understand the Amway Business Overview Brochure, which contains important information for those interested in becoming IBOs. FOR IBO USE ONLY NOT FOR USE WITH PROSPECTS 1

3 Q. What is Personal Group/Ruby (PG/Ruby) Volume and how does it differ from Award Volume? PG/Ruby is designated as Ruby Volume on your PV/BV Inquiry. It includes Personal PV plus pass-up volume from downline non-25% Silver Producer legs. PG/Ruby differs from Award Volume only when an IBO breaks a qualified Platinum leg. Once the Platinum breaks, they cannot include volume from that Platinum whether qualified at 25% or not. Q. Will there be Topping Up adjustments for GI Qualifications? No. Q. What is a NEW or First-Year Leg? A NEW, or First-Year Leg is an in-market leg qualified for the month at 25% that did not have a qualified Platinum in it one fiscal year ago. Q. What is a Second-Year Leg? A Second-Year Leg is an in-market leg qualified for the month at 25% that did not have a qualified Platinum in it two fiscal years ago. Q. What is a frontline Q? A frontline Q is a qualified in-market 25% month in frontline legs. Q12 and Leader Development Awards may require growth over last year s frontline Q baseline for qualification. One frontline IBO can generate a maximum of 12 Qs to the upline during any given fiscal year, however there is no limit to the number of frontlines that can contribute Qs to the upline qualifier. Q. What determines an IBO s frontline Q baseline? All IBOs start the new fiscal year with a Q baseline. This is the number of frontline Qs the IBO had the previous year. Some 2016 programs, including Q12 and the Leader Development Awards, may require growth over the number of Qs qualified in the previous year. Legs qualifying using Volume Equivalency (VE) that contribute to a higher payment level will be adjusted to represent 12 Qs rather than 10 or 11. Q. What is Volume Equivalency (VE)? Volume equivalency when qualifying for Q12 allows an IBO to miss one or two months of Q12 qualification and still qualify for Q12. This requires 10 or 11 Q12 months PLUS 108,000 PG/Ruby PV. For a leg to qualify as a Founders Platinum leg using volume equivalency requires 10 or 11 Platinum Months plus 108,000 TOTAL PV (a total of all PV generated in the leg). A leg qualifying using volume equivalency, while they may have only 10 or 11 months, will count for the upline as having 12 qualified months and generating 12 Qs upline. As a result, their Q baseline for the following fiscal year will be adjusted accordingly. FOR IBO USE ONLY NOT FOR USE WITH PROSPECTS 2

4 Q. What is the definition of an additional Q or Q growth? The number of frontline Qs above the previous year s Q baseline. For example: An IBO qualifying for a Q12 Growth Payment requiring at least 6 additional Qs would need to have 6 more Qs in 2016 than they had in If the number of Qs they had coming in to the year was 6, they would need to end the year with 12 Qs to meet the growth requirement of 6 additional Qs. Q. What is Max Q tracking as shown on my monthly GI Tracking Report? This is the number of maximum Qs an IBO is tracking for based on the potential months left in the fiscal year. Example: an IBO has 3 legs, all of whom have qualified all months through July for a total of 21 Qs YTD. Their MAX Q Tracking, assuming all 3 legs continued to qualify all remaining months of the fiscal year, would be 36. FL Leg 1 FL Leg 2 FL Leg 2 S O N D J F M A M J J A Max Track As of Sept As of Feb Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q As of July A Frontline leg contributes to the Max Q Tracking calculation at the point of its first 25% month in the FY Max Q Tracking assumes the Frontline leg will reach the 25% level for all of the remaining months in the FY BASELINE REQUIREMENTS Q. Are there Baseline Requirements that must be met to earn GI Bonuses? Yes. In addition to the individual requirements needed to qualify for the various incentives, Baseline Requirements must also be met (go to individual sections to see which of these baseline requirements apply): 1) Average 150 Personal PV each month (1800 annually) and 2) Average 50 Qualified Customer PV (QCPV) each month (600 annually) and 3) Complete six Training Credits and 4) Have a signed Amway contract on file and 5) Have a signed Silver Producer Acknowledgement (SPA) on file (applies only to those Silver Producers who qualified 9/1/11 or later) and 6) Must be in good standing and demonstrate high ethical and business standards aligned with the goals and objectives of Amway and its related businesses. Q: If an IBO doesn t meet the baseline requirements, can they make them up after the qualification year closes? No. ALL baseline requirements MUST be met prior to the close of the Fiscal Year to qualify for GI Cash Awards. No exceptions will be made for IBOs who fall short at the end of the fiscal year. IBOs can track their progress by viewing their GI Reports online. Additionally, Amway sends IBOs a monthly showing all the Awards they may be tracking for and baseline requirements year-to-date. FOR IBO USE ONLY NOT FOR USE WITH PROSPECTS 3

5 Q. What is the Silver Producer Acknowledgement (SPA)? The Silver Producer Acknowledgement (SPA) is a form/card that must be completed that acknowledges an IBO s new Silver Producer status and their IBO responsibilities. An SPA card must be on file for new Silver Producers qualifying after 9/1/11 in order to receive a GI Cash Award. This does not apply to IBOs who were Silver Producers prior to 8/31/11. Q. Where can an IBO find the SPA card? The SPA card is automatically mailed to all new Silver Producers and must be completed and returned to Amway before any GI Cash Awards can be paid. Q. If an IBO qualifies to earn a monthly GI Cash Award must the 50 Customer PV and 150 Personal PV be averaged based on the number of months qualified to date? Yes. Additionally, some Fast Track awards require 50/150 in the same month as the qualification is met to earn the cash bonus so it s best that IBOs meet this requirement each month (rather than relying on averaging) to maximize their GI Cash Award potential. Q. What is Qualified Customer PV (QCPV)? Qualified Customer Volume includes auto-captured retail sales by registered customers and/or sales to customers reported online using the Customer Sales Receipt (CSA) tool. Q. Do customer orders fulfilled from inventory and reported using the CSA count toward an IBO s 50 QCPV monthly requirement? Yes. Q. Do qualified Platinums need to report QCPV to earn GI Bonuses? Yes. Q. How do earning the training credits work and what s the best way to complete them? IBOs must complete six training credits to qualify for most GI Cash Awards by taking online courses or attending Amway Instructor-led Training (ILT) courses at Accreditation Plus Approved Provider or Amway-sponsored events. Online courses that IBOs complete will automatically be tracked and will show each month on the IBO s GI Tracking Report online. Q. Who must complete the six training courses? All IBOs who wish to earn annual Growth Incentive Cash Awards. (Not required to receive Two-Time Cash Awards or trips.) Q. Will seminars, books, and tapes offered through an Approved Provider count for training credits? No. FOR IBO USE ONLY NOT FOR USE WITH PROSPECTS 4

6 Q. How will an IBO know what Growth Incentives they are tracking for in FY16? Once an IBO begins tracking for a GI Award, they can view all their GI Tracking information on their monthly GI Tracking Reports online at Amway.com > Business Center > Business Reports > GI Tracking Report. Additionally, all Platinums will receive a monthly from their National Account Rep. IBOs may also call their National Account Rep to discuss everything they re tracking for throughout the year. IBOs residing in Canada can view their reports online at Amway.ca. TWO-TIME CASH AWARDS Q. Which baseline requirements are needed to earn a First- or Second-Year Cash Award? In addition to meeting the qualification requirements to earn a Two-Time Cash Award, IBOs must attain a year-to-date average of 50/150 in the same month they qualify for the Award; must have a signed Amway contract on file; and must have a signed Silver Producer Agreement (SPA) on file (IBOs who qualified Silver Producer prior to 8/31/11 do not need a signed SPA on file). No training credits are required to earn a Two-Time Cash Award but it s in every IBO s best interest to complete at least 6 training credits as they may be required for other incentives. Not to mention the knowledge they ll gain. Q. If an IBO doesn t meet the baseline requirements, can they make them up after the qualification year closes? No. ALL baseline requirements MUST be met prior to the close of the Fiscal Year to qualify for GI Cash Awards. No exceptions will be made for IBOs who fall short at the end of the fiscal year. IBOs can track their progress by viewing their GI Reports online. Additionally, Amway sends IBOs a monthly showing all the Awards they may be tracking for and baseline requirements year-to-date. Q. Can an IBO earn more than one Two-Time Cash Award in the same FY? Yes. Two-Time Cash Awards, both First- and Second-Year, are cumulative. So, if an IBO earns more than one Award within the same FY, they will receive them all. Q. If an IBO qualifies for more than one Two-Time Cash Award in the same fiscal year will they be eligible to receive all bonuses cumulatively? Yes. This includes the Second-Year (Solidification) Awards. For example, an IBO who qualified as a new Gold Producer, and Platinum in 2015 and who goes on to qualify Founders Platinum, Sapphire, and Founders Sapphire in 2016 will not only earn their First-Year Cash Awards for new Founders Platinum, Sapphire, and Founders Sapphire, they will also earn the second-year Solidification Awards for Gold Producer and Platinum. This assumes all baseline requirements are met and the qualification gains final approval from National Accounts. Q. If an IBO starts their new Gold Producer or Platinum qualification in FY2015 and overlaps their qualification into FY2016, when will they receive their First-Year Cash Award? IBOs who utilize the rolling 12-Month Gold Producer or Platinum qualification and complete their qualification by overlapping into a new fiscal year will receive their $2,000 or $3,000 First-Time Cash Awards AFTER they have completed 3 (for Gold Producer) or 6 (for Platinum) within a fiscal year. Example: FOR IBO USE ONLY NOT FOR USE WITH PROSPECTS 5

7 2016 Sept Oct Nov Dec Jan Feb March Apr May June July Aug Q Q Q Q Q 2017 Sept Oct Nov Dec Jan Feb March Apr May June July Aug Q Q Q Q Q Q In the example above, this IBO started their Platinum qualification in October They completed their qualification in September 2017 by rolling over to FY2017 and will be recognized as a Platinum at that time. However, they will not receive their First-Time Cash Award or an invitation to attend their New Platinum Conference until they ve actually completed 6 months within a fiscal year. In this case, they qualified their 6th month in February 2017 and will receive their bonus in March. First-time Platinums must qualify with at least 3 of the 6 months being consecutive. Q. Can an IBO earn a Second-Year Two-Time Cash Award for solidifying their business in year two? Yes. An IBO can solidify/maintain for one year and still get a Second-Year Solidification Award equivalent to half of the First-Year Award. Subsequent years will require growth to be paid at the next level. Q. If an IBO didn t qualify for the First-Year Award because they didn t meet all the baseline requirements would they still be eligible to receive the Second-Year Award if they requalify the next fiscal year? Yes. Assuming all baseline requirements are met. Q. To receive a Second-Year Solidification Award, must the IBO qualify in the very next year? Or is it the second time they qualify to earn the bonus regardless of what year that is? Must be the year following the year they were eligible to receive their First-Year Cash Award. Q. Can an IBO earn a comeback Platinum Bonus more than once? No. Q. If an IBO earned a Comeback Platinum Bonus in FY2015, are they eligible for the Second-Year Solidification Award in 2016? Yes. Q. Is there a Comeback Founders Platinum Bonus also? No. FOR IBO USE ONLY NOT FOR USE WITH PROSPECTS 6

8 Q. Would an IBO who qualifies Platinum in 2014, but doesn t requalify in 2015, be eligible for a Comeback Platinum Bonus if he requalifies in 2016? Yes. Platinums that qualified in FY2014 or earlier, did not requalify for Platinum in FY2015, then requalify in FY2016 can earn the Platinum Comeback Award in Q. If an Emerald Pin that qualified in FY2015 with two North American legs and one international leg adds a fourth leg in North America, thus earning an Emerald Bonus, will they be eligible for a New Emerald FTCA in 2016? Yes. The bonus is intended to reward first-time Emerald Bonus Recipients (EBRs). PLATINUM PLUS MONTHLY CASH AWARDS Q. Which baseline requirements are needed to earn a Platinum Plus Cash Award? In addition to meeting the qualification requirements to earn a Platinum Plus Cash Award, IBOs must attain 50/150 in the month qualifying for the Award; must have a signed Amway contract on file; and must have a signed Silver Producer Agreement (SPA) on file (IBOs who qualified Silver Producer prior to 8/31/11 do not need a signed SPA on file). Additionally, IBOs earning a Platinum Plus Award must be at least a qualified Platinum. Q. If an IBO doesn t meet the baseline requirements, can they make them up after the qualification year closes? No. ALL baseline requirements MUST be met prior to the close of the Fiscal Year to qualify for GI Cash Awards. No exceptions will be made for IBOs who fall short at the end of the fiscal year. IBOs can track their progress by viewing their GI Reports online. Additionally, Amway sends IBOs a monthly showing all the Awards they may be tracking for and baseline requirements year-to-date. Q. When will Platinum Plus Awards be paid? Platinum Plus Awards will be paid with the monthly GI Awards on the 20th of the month following the qualification. This allows time for National Accounts to review and approve the award. Q. Will Topping Up adjustments be made if an IBO is within 5% of their Platinum Plus Cash Award? No. There will be no Topping Up Adjustments for any GI Monthly or Annual Cash Awards. However, Topping Up adjustments will be made for IBOs tracking 7500 Award PV or 2500 Award PV over a qualified 25% leg for Core Plan purposes. Q. Can a qualified Sapphire or above earn the maximum 2% (10,000 12,499 PG/RUBY PV), 4% (12,500 14,999 PG/RUBY PV, and 6% (15,000 PG/RUBY PV and above) Platinum Plus Awards as long as they maintain their frontline Qs from the previous year? Yes. Those Sapphires who fall below their Q baseline can still earn a Platinum Plus Award at the lesser amounts of 1% (10,000 12,499 PG/RUBY PV), 2% (12, PG/RUBY PV), and 4% (15,000 PG/ RUBY PV and above). FOR IBO USE ONLY NOT FOR USE WITH PROSPECTS 7

9 Q7 Q11 MONTHLY CASH AWARDS Q. Which baseline requirements are needed to earn a Q7 Q11 Monthly Cash Award? In addition to meeting the qualification requirements to earn a Q7-Q11 Cash Award, IBOs must attain a year-to-date average of 50/150 in the month qualifying for the Award; must have a signed Amway contract on file; and must have a signed Silver Producer Agreement (SPA) on file (IBOs who qualified Silver Producer prior to 8/31/11 do not need a signed SPA on file). Q. If an IBO doesn t meet the baseline requirements for a Q7-Q11 Bonus, can they make them up after the qualification year closes? No. ALL baseline requirements MUST be met prior to the close of the Fiscal Year to qualify for GI Cash Awards. No exceptions will be made for IBOs who fall short at the end of the fiscal year. IBOs can track their progress by viewing their GI Reports online. Additionally, Amway sends IBOs a monthly showing all the Awards they may be tracking for and baseline requirements year-to-date. Q. Can an IBO earn Q7-Q11 Bonuses each year after qualifying their 7th Q12 Month? Yes. These monthly bonuses can be earned each year starting with the 7th month AND where the number of Q12 months exceeds the number of Q12 months earned the previous year. (i.e., if an IBO qualified with 7 Q12 months in 2015, they can earn a Q7-Q11 Award of $1,000 each month beginning with their 8th month in 2016 for a total of $4,000. If an IBO qualified with 9 Q12 months in 2015, they can earn a Q7-Q11 Award of $1,000 each month beginning with month 10 for a total of $2,000). Examples: 1. Previous Year Q12 Baseline remains the same until the number of qualified months exceeds the baseline Q12 Months Baseline # Q12 Months Qualified Bonus Amount $2,000 $-0- $-0- $3,000 $5,000 MAX can be earned in Q7-Q11. Baseline not adjusted to 7 in Q12 Months Baseline # Q12 Months Qualified Bonus Amount $1,000 $1,000 $1,000 + $15,000 (Q12) $-0- (Q7-11) $15,000 (Q12) Q. What s the Difference Between a Q12 month and a Platinum Month? An IBO qualifies for a Q12 Month when he has attained either 7500 PG/RUBY PV or 4,000 PG/RUBY PV over one or more qualified NEW, or Second-Year Legs. Q12 qualification uses PG/RUBY PV. A Platinum month can be earned by either attaining 7500 Award PV, 2500 Award PV over 1 qualified 25% leg, or by having 2 qualified 25% legs in the same month. Award PV is used when determining a qualified Platinum Month (see definition for Award PV on page 2). FOR IBO USE ONLY NOT FOR USE WITH PROSPECTS 8

10 Q. Can an IBO earn a Q7-Q11 Bonus on their Potential Q12 Months, or months that are eligible to qualify at the end of the year using averaging? Yes. While it s always best to qualify with the full volume needed to meet the requirement (7500 PG/RUBY PV or 4000 PG/RUBY PV over a qualified First- or Second-Year leg) to earn the bonus immediately, Amway will do a final year-end calculation and pay for all months that qualified later in the year due to averaging. Q. Are IBOs who earn monthly Q7-Q11 Bonuses also eligible to receive the annual Q12 Bonus? Yes! IBOs tracking toward Q12 can earn both the Q7-Q11 Bonuses (up to a maximum of $5,000) AND the Q12 Bonus. The following year, this IBO would no longer be eligible for a Q7-Q11 Award as he is now a Q12 qualifier and has the option to earn growth payments at each level of Q12 depending on his frontline Q growth. (See Money and Rewards Brochure for Q12 qualification requirements.) Q. When will the Q7-Q11 Month Cash Awards be paid? The Q7-Q11 Bonus of $1,000 will be paid each month following the month the qualification was met. Months where averaging is required will be reviewed and paid at the end of the year. Therefore, it is in every IBO s best interest to hit the required PV each month so they can be paid their bonuses immediately and not have to wait until the end of the year. Q. Will Topping Up adjustments be made if an IBO is within 5% of their Q7-Q11 Monthly Cash Award? No. There will be no Topping Up adjustments for any GI Monthly or Annual Cash Awards. However, Topping Up adjustments will be made for IBOs tracking 7500 Award PV or 2500 Award PV over a qualified 25% leg for Core Plan purposes. Q12 CASH AWARDS Q. Which baseline requirements are needed to earn a Q12 Cash Award? In addition to meeting the qualification requirements for the Q12 Cash Award, IBOs must attain 50/150 each month on average (600/1,800 annually); must have a signed Amway contract on file; must have a signed Silver Producer Agreement (SPA) on file (IBOs who qualified Silver Producer prior to 8/31/11 do not need a signed SPA on file); must have 6 Training Credits AND must be in good standing. Q. If an IBO doesn t meet the baseline requirements, can they make them up after the qualification year closes? No. ALL baseline requirements MUST be met prior to the close of the Fiscal Year to qualify for GI Cash Awards. No exceptions will be made for IBOs who fall short at the end of the fiscal year. IBOs can track their progress by viewing their GI Reports online. Additionally, Amway sends IBOs a monthly showing all the Awards they may be tracking for and baseline requirements year-to-date. FOR IBO USE ONLY NOT FOR USE WITH PROSPECTS 9

11 Q. What s the difference between 7500 award PV needed for Plan Bonus and PG/RUBY needed for GI Cash Awards? Award PV from a downline Platinum leg rolls up in non-qualifying, non-25% months, but PG/Ruby PV does not include ANY Platinum volume whether qualified at 25% or not. Q. If an IBO has a leg that hasn t qualified Platinum since FY2014, are they considered a First-Year leg in FY2016? Yes. By definition, a new leg is one that did not have a Platinum qualify in it one fiscal year ago. In this case, the last time this leg qualified a Platinum was in FY2014. Since they did not qualify a Platinum in FY2015, it will be considered a comeback, or First-Year leg for FY2016. Therefore, 4000 PG/Ruby PV would be required over the First-Year leg to count as a Q12 month. Q. Is averaging allowed when qualifying over a First- or Second-Year leg? Averaging is allowed when qualifying over one or more First- or Second-year legs. The volume needed to achieve averaging is 4000 PG/RUBY PV regardless of the number of First- or Second-year legs. Keep in mind however, that it may be in the IBO s best interest to not rely on averaging and meet the side volume requirement if they are also qualifying for a monthly Q7-Q11 Award. Q. Can an IBO qualify for a Q12 Cash Award using Volume Equivalency? Yes. Volume Equivalency can be used to qualify for the $15,000 Q12 Award. To qualify for the Q12 Awards ranging from $20,000 $30,000 will require Q growth Q12 Months PLUS 108,000 PG/Ruby PV = $15, Q12 Months PLUS 108,000 PG/Ruby PV + 6 Additional Qs = $20, Q12 Months PLUS 108,000 PG/Ruby PV + 12 Additional Qs = $25, Q12 Months PLUS 108,000 PG/Ruby PV + 18 Additional Qs = $30,000 Q. What is Volume Equivalency (VE)? Volume Equivalency when qualifying for Q12 allows an IBO to miss one or two months of Q12 qualification and still qualify for Q12. This requires 10 or 11 Q12 months PLUS 108,000 PG/Ruby PV. For a leg to qualify as a Founders Platinum leg using Volume Equivalency requires 10 or 11 qualified Platinum Months plus 108,000 TOTAL PV (a total of all PV generated in the leg). A leg qualifying using Volume Equivalency, while they may have only 10 or 11 months, will count for the upline as having 12 qualified months and generating 12 Qs upline. As a result, their Q baseline for the following fiscal year will be adjusted accordingly. Q. Will Topping Up adjustments be made if an IBO is within 5% if their Q12 Cash Award? No. There will be no Topping Up adjustments for any GI Monthly or Annual Cash Awards. However, Topping Up adjustments will be made for IBOs tracking 7500 Award PV or 2500 Award PV over a qualified 25% leg for Core Plan purposes. FOR IBO USE ONLY NOT FOR USE WITH PROSPECTS 10

12 Q. If a leg qualifies for Q12 through Volume Equivalency, does it also count as a Founders leg generating 12 Qs? Yes. Q. Do Platinums and above need to report customer volume in order to receive a Q12 Cash Award? Yes. Only those customer orders fulfilled through inventory need to be reported. Qualifying customer orders placed directly by registered customers using their customer number are automatically reported. Q. If two First-Time legs qualify in a month, can the 4000 PG/RUBY side volume be averaged? Yes, as long as at least one of the legs continues to qualify. Q. Are Q12 Cash Awards cumulative? No. IBOs can earn one Q12 Bonus each year, whichever is highest. Q. What happens if an IBO breaks a new Platinum leg and qualifies 4000 PG/RUBY PV over the new leg each month it qualifies but then the new Platinum leg drops below 25%? In this scenario, Amway will allow the upline IBO to continue to qualify with 4000 PG/Ruby PV over the New downline Platinum AS LONG AS the downline maintains AT LEAST 3500 Award PV and the total combined Award PV equals Any volume over the 4000 PG/Ruby PV in these months are not eligible for averaging. S O N D J F M A M J J A IBO 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 5,000 2,000 New Leg #1 Q12 Month for IBO? 7,500 7,500 7,500 7,500 7,500 7,500 (New Plat) 3,500 3,500 2,500 3,500 2,500 4,500 Yes Yes Yes Yes Yes Yes Yes Yes No Yes No No Volume overage in these months cannot be averaged because downline didn t reach 25%. While July adds up to 7,500, this does NOT count as a Q12 month for IBO since downline must have at least 3,500 Award PV. Q. If an IBO finishes with 3000 PG/RUBY PV over a downline 25% leg, are they able to make up the volume they were short since 4000 PG/RUBY PV is required? Yes. When qualifying with 4000 PG/RUBY PV over a qualified 25% leg, and as long as the month is at least a qualified Platinum month, they can be averaged. However, this requires the leg to qualify again. If the leg does not qualify any additional months, the option for averaging will be lost. In this scenario, it s in an IBO s best interest to qualify with the required 4000 PG/RUBY PV. Any excess volume over 7500 PG/ Ruby PV when not qualifying over a New or Second-Year leg is not used for averaging. FOR IBO USE ONLY NOT FOR USE WITH PROSPECTS 11

13 S O N D J F M A M J J A IBO 4,000 4,000 5,000 3,500 2,500 4,000 1,500 4,000 4,000 5,000 6,000 5,500 New Leg #1 IBO s Excess volume can be used to average? Month can be averaged? 7,500 7,500 7,500 7,500 7,500 7,500 (New Plat) 7,500 2,500 3,000 2,500 3,500 7,500 N/A N/A Yes N/A N/A N/A N/A N/A No No No Yes This IBO has only 7 Q12 Months. Q Q Q Yes Yes Q No (Must be at least a Plat. Month) No (downline not at 25%) No (downline not at 25%) No (downline not at 25%) Q. An IBO is getting ready to break their first qualified 25% leg. What side volume do they need? The side volume required over one or more New or Second-Year legs is 4000 PG/RUBY PV. No (downline not at 25%) Q IBO Side Volume Required New Leg #1 2nd-Year Plat. Leg Existing Leg S O N D J F M A M J J A 4,000 4,000 4,000 4,000 4,000 4,000 7,500 4,000 4,000 4,000 4,000 4,000 7,500 7,500 7,500 7,500 7,500 7,500 (New Plat) 7,500 3, ,000 7,500 4,500 7,500 7,500 6,000 7,500 7,500 7, , , ,500 7,500 7,500 6,000 7,500 7,500 7,500 7,500 7,500 7,500 7, ,500 LEADER DEVELOPMENT CASH AWARDS Q. Which baseline requirements are needed to earn a Leader Development Cash Award? In addition to meeting the qualification requirements for the Leader Development Cash Awards, IBOs must also attain 50/150 each month on average (600/1,800 annually); must have a signed Amway contract on file; must have a signed Silver Producer Agreement (SPA) on file (IBOs who qualified Silver Producer prior to 8/31/11 do not need a signed SPA on file); 6 training credits; AND be in good standing. Q. If an IBO doesn t meet the baseline requirements, can they make them up after the qualification year closes? No. ALL baseline requirements MUST be met prior to the close of the Fiscal Year to qualify for GI Cash Awards. No exceptions will be made for IBOs who fall short at the end of the fiscal year. IBOs can track their progress by viewing their GI Reports online. Additionally, Amway sends IBOs a monthly showing all the Awards they may be tracking for and baseline requirements year-to-date. FOR IBO USE ONLY NOT FOR USE WITH PROSPECTS 12

14 Q. Are NEW Emeralds and Diamonds eligible to participate in the Leader Development Cash Awards? Yes. New in-market Emeralds, or Emerald Bonus Recipients (EBRs) and New in-market Diamonds, or Diamond Bonus Recipients (DBRs) who finish with the appropriate number of Qs and side volume are eligible to receive a Leader Development Cash Award. They do not have to come into the year qualified at these levels. Q. What is a frontline Q? A frontline Q is a qualified in-market 25% month in frontline legs. Q12 and Leader Development Awards may require Qs for qualification. One frontline IBO can generate a maximum of 12 Qs to the upline during any given fiscal year, however there is no limit to the number of frontlines that can contribute Qs to the upline qualifier. Q. Earning a Leader Development Cash Award of $80,000 requires a minimum of 54 Qs, six of which are new, plus 2,500 PG/Ruby side volume. Does it also require an IBO to be an in-market Founders Emerald with at least three qualified in-market 12-month legs? Yes. To earn a Leader Development Cash Award at all levels requires an IBO to meet all baseline requirements and have 3 in-market 12-month legs. Additionally IBOs earning a Leader Development Cash Award at 54 Qs and higher must be in-market qualified Diamonds earning a Diamond Bonus (DBR Diamond Bonus Recipient). Q. If an IBO has 54 Qs, 6 of which are new, and has met all other baseline requirements but is not a Diamond Bonus Recipient, can they still earn a Leader Development Award? Yes. This IBO would be eligible to earn a Bonus at the 48 Q level and can stay at that level as long as they are growing by 6 Qs. 54 Qs with 6 Qs growth and 2500 Ruby PV DBR $80,000 not DBR $60,000 Q. Does an IBO s international leg(s) count toward Leader Development Cash Awards? No. This is an Amway North America (ANA) GI Program that rewards growth in North America, therefore only in-market legs count. Q. How much money could an IBO earn if they meet all the baseline requirements, average 2500 PG/Ruby PV, have three in-market 12 month legs, and have 48 Qs, 6 of which are new? This IBO could earn $60,000 from the Leader Development Cash Awards incentive. FOR IBO USE ONLY NOT FOR USE WITH PROSPECTS 13

15 Q. How much money could an IBO earn if they meet all the baseline requirements, have six in-market legs with at least three of them having 12 qualified months, 2500 PG/Ruby Side Volume and 72 Qs, 6 of which are new? This IBO could earn $150,000 from the Leader Development Cash Awards program. Q. If an IBO has a leg qualify with Volume Equivalency, does that count for 10 or 12 Q credits for the Leader Development Cash Awards? A leg qualifying with VE counts as a 12-month leg toward an IBO s Leader Development Cash Award. This means that while the leg qualifying with VE may have only had 10 or 11 qualified months it will count as a full 12 and next year s Q baseline will be adjusted accordingly based on 12 Qs counted from that leg. Q. What is Volume Equivalency (VE)? For a leg to qualify as a Founders Platinum, or 12-month leg, using volume equivalency requires 10 or 11 qualified Platinum Months plus 108,000 TOTAL PV (a total of all PV generated in the leg). A leg qualifying using Volume Equivalency, while they may have only 10 or 11 months, will count for the upline as having 12 qualified months and generating 12 Qs upline. As a result, their Q baseline for the following fiscal year will be adjusted accordingly. Sept Oct Nov Dec Jan Feb Mar Apr May Jun July Aug Leg 1 Q Q Q Q Q Q Q Q Q Q Q Q 12 Leg 2 Q Q Q Q Q Q Q Q Q Q 10 VE Leg 3 Q Q Q Q Q Q Q Q Q Q Q 10 VE In the above scenario, this IBO qualifies as a Founders Emerald with one 12-month leg and 2 legs that qualify with 10 months and 108,000 PV thus counting as a 12-month leg. Actual Qs = 32. However, since the VE legs will count as 12-month legs, 36 Qs will be counted. Q baseline for the following year will be 36. Q. If an IBO has a sufficient number of Qs for a Leader Development Award but falls short of the side volume needed in some months, can they average the side volume needed to qualify by the end of the year? Yes. Q. Does a 12-month leg need to have a Platinum in depth? No. While it s always good for the stability of the leg, it is not required. Q. Is it true that an IBO qualifying for a Leader Development Award requiring 60 Qs or more can qualify for the growth requirement using ANA FAA Points in lieu of additional Qs? Yes. Starting at 60 Qs, an IBO can use ANA FAA Points instead of total Qs to determine award payment as long as all other requirements, including side volume and baseline requirements, are met. In this scenario, the number of Qs MUST be maintained from the previous year s Q baseline. At no time can an IBO drop the number of Qs from last year s baseline and earn a Leader Development Bonus. FOR IBO USE ONLY NOT FOR USE WITH PROSPECTS 14

16 Q. An IBO came into the year with 72 Qs and finished the year with 70 Qs. However, this same IBO grew by.5 ANA FAA. Will he be eligible for a Leader Development Award? No. IBOs must maintain the number of Qs from the previous year first and foremost to be eligible for this Bonus. At no time can an IBO drop the number of Qs from last year s baseline and earn a Leader Development Bonus. 1. No Leader Development Bonus is paid if IBO drops Qs (even if grew FAA). At no time can the Qs be less than last year s Q baseline ** PY Q Baseline # Qs Qualified LY ANA FAA TY ANA FAA /- +6 Qs/-- -6 Qs/ Qs/-1.5 LD Award $150,000 (Growth Payment) **Assumes same program in place for 2018 $112,500 (75% Solidification) $-0- (No Payment since dropped Qs, even though grew FAA) $150,000 (Growth Payment since grew Qs even though dropped FAA) 2. Only one solidification award can be earned at each level (do not need to be earned in consecutive years) * 2020* PY Q Baseline # Qs Qualified LY ANA FAA TY ANA FAA ** +/- -12/- --/-1 +2/+1 LD Bonus $150,000 (75% Solidification) $-0- (Dropped Qs) $87,500 (50%) $-0- (MAX Solidification Awards already paid) $200K (Growth Award based on FAA Growth and Q Maintenance) *This GI Program runs through FY2017, however this example goes through FY2020 for purposes of illustration. There is no guarantee this program will be the same program after FY2017. Once IBO earns a 75% AND 50% Solidification Award, they MUST grow in order to earn subsequent Growth and/or Solidification Awards. All of the above examples assume all baseline and side volume requirements are being met. Q. If an IBO grows by 12 Qs or more, is 2500 PG/Ruby Side Volume still required? No. IBOs who grow by 12 Qs or more are only required to have 300 PG/Ruby Side Volume. Note: This does NOT apply when using ANA FAA Points to qualify in lieu of Qs, only when actual Q growth is achieved. FOR IBO USE ONLY NOT FOR USE WITH PROSPECTS 15

17 Q. If an IBO ends FY2016 with fewer Qs than their baseline from FY2015, can they still earn a lesser Leader Development Cash Award? No. Growth is required to earn a Leader Development Cash Award. IBOs may solidify, or maintain, at the same level for up to two years to earn the solidification awards paid at 75% and 50%, but may not fall back. To earn a Leader Development Cash Award in future years, however, will require growth. Q. Is it true that an IBO can also meet the growth requirement by maintaining 7500 PG/RUBY PV for all 12 months (90,000 annually) starting at 60 Qs? Yes. Q. Is is true that at a minimum of 60 frontline Qs, an IBO can meet the growth requirement by increasing their ANA FAA points by at least.5 points over the prior year? Yes, as long as they also at least maintain the number of Qs from the previous year. FAST TRACK ENHANCED Q. With the enhanced Fast Track Incentive Program opening up to all existing IBOs one time each year, are existing IBOs also able to earn the $50 New IBO Incentive? No. All program requirements remain the same. The $50 New IBO Incentive is for NEW IBOs only. Existing IBOs cannot earn the $50 Incentive, however they must meet the requirements of 50/150 in order to earn either the $100 First Step, $200 Balanced Sponsor, and/or $1,000 Fast Track Plus Bonuses, which are available to them one time each year. Q. Are the $100, $200, and $1,000 Fast Track Awards still One-Time Cash Awards? Yes. All can be earned one time per year starting September of each new fiscal year. And IBOs who have previously qualified for these awards are eligible to participate again. Q. Do the $50 New IBO Incentive earners have to be frontline/personally sponsored IBOs? No. Same as the current program it s the leg that must have a $50 qualifier, not the frontline. BUSINESS CONFERENCE QUESTIONS Q. Who can qualify to attend the Achievers Trip? All IBOs who receive a Q12 Cash Award and all qualified Sapphires and above are eligible to receive an Achievers invitation Trip: Las Vegas, Nevada 2017 Trip: San Diego, California FOR IBO USE ONLY NOT FOR USE WITH PROSPECTS 16

18 Q. Will IBOs be eligible to bring two children at Amway s expense in 2016 when they hit specific growth criteria? No. There was a family promotion in 2015 for the Orlando trip, however Amway has decided not to run this same promotion for the 2016 Las Vegas trip. Q. Who can qualify for a Diamond Dreams Trip (formerly Peter Island)? First-time qualified Diamonds and above who achieve at least 3 Diamond Dream Points are eligible for a Diamond Dreams Trip. A goal of 4.5 must be earned to receive an invitation in year 2. Each year thereafter, Diamond qualifiers must meet their annual leg qualification goal (which is.5 over their previous year s Diamond Dream Point goal) AND must be an in-market Diamond (DBR). Q. Who can qualify for the North American Growth Council Trip? Qualified EDCs and above who are Diamond Bonus Recipients with at least three 12-month legs AND one of the following: 84 N.A. Qs, OR 10 ANA FAA Points, OR 72 N.A. Qs including at least 6 New Qs. 2016: Greece 2017: TBD Q. Who can qualify for the Global Founders Council Trip? IBOs who attain 20 or more FAA Points OR who qualify as Founders Crown or above. 2016: London 2017: TBD FOR IBO USE ONLY NOT FOR USE WITH PROSPECTS All rights reserved. Printed in the USA ENB