Section 5 – Responsibilities and Obligations of all Sponsors
Each Amway Business Owner (IBO) is responsible for building his/her own Amway business. Amway recognises that support, training and motivation from the Sponsor/Platinum are also important to the continued growth of Amway businesses downline. IBO and other upline activities must never undermine the independence of each Amway business or improperly interfere with the relationship between Amway and each IBO. Further, Section 5 prohibits excessive or improper activity which may also constitute manipulation of the Amway Sales and Marketing Plan. (See also Rule 4.25)
5.1 Duties and Responsibilities of Sponsors: In addition to all other obligations and responsibilities as an IBO, and in order to qualify for a performance Bonus/Rebate on the products obtained by his/her personal group, a IBO who engages in sponsoring activity or who sponsors an IBO shall:
5.1.1 Ensure the immediate submission of all executed IBO applications to Amway in accordance with these Rules of Conduct;
5.1.2 Sell to the sponsored IBO an unaltered Amway registration pack, and inform him/her of the applicable time period in which to return the pack for a refund;
5.1.3 Be in compliance with the IBO Contract and meet all requirements as set forth in the IBO Contract including Amway Business Policies;
5.1.4 Regularly train and motivate the sponsored IBO in accordance with Amway Business Policies or otherwise as required or directed by Amway from time to time, or cooperate with the upline Platinum to ensure that this training and motivation occurs;
5.1.5 Explain the Amway Sales and Marketing Plan to all new IBOs, and provide ongoing Sales and Marketing Plan and product training to downline IBOs
5.1.6 Ensure that the IBO whom they have personally sponsored and downline of those sponsored, to the next Platinum, fully comply with the Amway Rules of Conduct and the terms of the IBO Contract including the Amway Business Policies, all directives issued by Amway from time to time and all applicable laws and regulations;
5.1.7 Personally engage in and encourage retail sales
5.1.8 Encourage IBOs whom they have personally sponsored and downline of those sponsored, to the next Platinum, to attend official Amway meetings and functions;
5.1.9 Explain the responsibilities and obligations of an IBO under the IBO Contract, including the Amway Business Policies and instruct the sponsored IBO on how to operate a IB in accordance with the Amway Business Policies and other official Amway literature;
5.1.10 Support and comply with the Rules of Conduct and educate and assure that other IBOs whom they have personally sponsored and downline of those sponsored, to the next Platinum do the same;
5.1.11 Protect the sponsorship rights of each IBO whom they have personally sponsored and downline of those sponsored, to the next Platinum;
5.1.12 Promptly take back any Amway products and Amway-distributed products which are in good and saleable condition and which are listed in the current IBO price list and good and saleable registration packs (or parts thereof) and other Amway non-BV business aids from any personally sponsored IBOs who resign their appointments and make reimbursement for such items in accordance with Amway’s refund policy;
5.1.13 Encourage the IBOs in their Personal Group to carefully study, use and carefully conduct his/her IB in accordance with official Amway publications and in accordance with any instructions and directives issued by Amway from time to time;
5.1.14 Encourage the IBOs in their Personal group at all times to work with a cooperate with Amway employees; and
5.1.15 Not in any way discourage any IBOs, whether in his/her Line or Sponsorship or otherwise, from:
a) attending Amway meetings or other Amway functions;
b) conducting his/her IB in accordance with Amway’s instructions and directives; or
c) working and cooperating fully with Amway employees.
5.2 Failure to fulfil Sponsor Duties: If the Sponsor fails to fulfil his/her duties pursuant to Rule 5.1, and such failure continues despite two written warnings from the Platinum IBO in the Sponsor’s Line of Sponsorship (each requiring the appropriate evidence within 30 days of the warning) the Platinum IBO may, following involvement of the State Sales Manager, seek reallocation of that portion of the Sponsor’s Performance Bonus/Rebate related to the products acquired by the Sponsor on behalf of the Sponsor’s sponsored IBOs; however, the Sponsor will be entitled to a Performance Bonus/Rebate based on the remainder of his/her acquisitions.
5.3 70/30 Rule: An IBO must deliver to his/her sponsored IBOs and/or supply to Clients or retail customers at least 70% of the total value of products ordered during a given month in order to:
5.3.1 receive a Performance Bonus/Rebate for that month calculated on all products ordered; and
5.3.2 qualify and be recognised for any award under the Amway Sales and Marketing Plan. Amway will, at its discretion, audit qualifications for pin levels.
5.4 If an IBO fails to comply with Rule 5.3, the Sponsor will pay him/her a Performance Bonus/Rebate calculated on the value of products actually supplied to customers and/or delivered to his/her IBOs, instead of the value of products ordered.
5.5 Management Agreement: Where a Sponsor will be absent from the business for a continuous period of more than three months, he/she must put in place a Management Agreement in respect of his/her IB and, in respect to absences from Australia or New Zealand as the case may be, shall in addition sign and forward to Amway a “Non-Resident IBO Agreement.”