GIP 2020 Terms & Conditions
Higher Award & Growth Incentive Program - Tracking & Review Process PY2020
Amway of Australia and Amway of New Zealand In Australia and New Zealand, bonus/rebate recipients and higher award qualifications must satisfy the Higher Award & Growth Incentive Program Tracking & Review Process.
This process is designed to only reward Amway Independent Business Owner (IBOs) who have achieved the minimum requirements for the payment of a bonus/rebate and the awarding of the Higher Award. In addition, Amway seeks to ensure higher award qualifiers and GIP recipients develop a Balanced, Sustainable and Profitable business structure, as well as actively contribute to the protection and enhancement of the reputation of Amway and IBOs
What do you need to do
- Read and understand the 2020 Growth Incentive Program and the terms and conditions;
- Confirm your acceptance of the Program and the terms and conditions
In summary you will be agreeing to
- Build your business in a Balanced, Sustainable and Profitable way
- Have a group size of between 50 and 180 IBOs (as a qualified Silver Producer)
- Structure your business to ensure you receive reasonable return for the time and effort you invest
- Have a minimum of 3 bonus paying legs as a Silver Producer or 6 as a Platinum
- Have between 6 and 30 IBOs on your front line
- Avoid more than 10 IBOs in depth without width
- Have between 30% t0 50% of your group purchasing each month
- Develop a positive group culture which embraces a balance between width and depth.
- Follow business guidelines which represent best practice for a
successful Amway business including:
- Achieve at least 12% (2000 PGV) in non-qualifying months if at the Silver Producer or Platinum level
- No stockpiling of multiple Big-Ticket items, product kits and large orders
- No large returns.
- Help Amway manage and recover debt in your organisation
- Continue to comply with the Rules of Conduct for Amway IBOs found at amway.com.au/rulesofconduct or www.amway.co.nz/rulesofconduct.
While this might seem like a prescriptive list, it reflects what successful IBOs do as they grow their businesses into Higher Award qualification. When we notice that you have one or more items outside normal Amway business practice, we will work with you and your Line of Sponsorship to firstly establish if there is an issue needing further attention, and if there is, help you to develop a solution.
All IBOs who wish to participate in the PY2020 Growth Incentive Program need to register their acceptance of the terms and conditions outlined below. This allows Amway to focus our resources toward those IBOs who identify themselves as being potential higher award qualifiers and ensures that all such persons are aware of the business conditions that must be met and maintained for a successful business.
Terms and Conditions:
Balanced, Sustainable and Profitable Structure
Amway is committed to ensuring that all IBOs who join the Amway business have the opportunity to develop a business that maximises the earning potential available from the Amway Sales and Marketing Plan Where an aspect of a business does not meet a criterion, it will raise a red flag. No criterion in isolation would be reason for concern but where a business does not meet several criteria required for development of a business based on a Balanced, Profitable and Sustainable business structure, further review of such businesses may occur. GIP payments may be held or denied if the matter is not addressed. Criteria that will be monitored include:
- No, or minimum differential bonus in qualifying months
The primary yardstick in terms of differential will be the average of what others at a similar qualification level are making. This is also informed by what the Amway Sales and Marketing Plan can theoretically deliver at the same level i.e. someone with 3250 PGV outside a qualifying leg should reasonably be expected to earn no less than AU$730.
- Minimum/Maximum IBO Numbers
If a Silver Producer has fewer than 50 IBOs or more than 180 IBOs, it will be regarded as a cause for concern.
It is expected that a Silver Producer should have at least 50 IBOs in their personal group and that this number will increase as the business grows to Platinum and beyond. However, Amway recognises that not all new 21% groups have 50 plus through line Amway businesses. This is particularly evident today with the diversity in our business with the number of IBOs focused on retailing. The company encourages the retailing of product, but we join the business leaders in being concerned with developing profitable and sustainable business volume. Therefore, for groups qualified at Silver Producer where the IBO count is less than 50, Amway may require the submission of a Business Plan, not to exceed 3 pages, which outlines the group leader’s plan for consistent and sustainable business volume. Amway’s Business Relations department can provide a template for a suitable business plan and provide assistance in the preparation of the plan if required.
- Bonus Paying Legs
A Silver Producer is expected to have at least 3 bonus paying legs. A Qualified Platinum or above is expected to have at least 6 bonus paying legs.
- Depth/Width Balance
More than 30 wide or less than 6 wide (applies to Platinum and above) will be regarded as a red flag. More than 10 in depth (without width) will also be a red flag.
- Number of purchasing IBO’s in your personal group
When there is less than 30% of your personal group purchasing this will be regarded as a red flag.
- Sponsoring Pattern
Where an organisation has a preponderance of IBOs who sponsor only one person this would be considered a concern.
For reference, currently in the Australia and New Zealand region the average number of through line Independent Businesses qualifying per business is: Silver Producer 80, Gold Producer 100 and Platinum 190. In order to support business development and achieve expectations on group size, sponsoring activity is essential and will be monitored at personal and group levels.
After the first Silver Producer qualified month, all participants will be expected to maintain a minimum 12% performance bonus/rebate level i.e. must have at least 2000 PGV (Australia and New Zealand) in non-qualifying months during the qualifying period.
Big Ticket Items, Product Kits and Large Orders
Participants will be required to provide (for personal sales) and support the maintenance and retention of copies of sales dockets, particularly for bigticket durable products, product kits or large orders totalling 800ppv or above. Any IBO who has 3 or more big ticket purchases in a given month will be required to respond to a 70/30 letter.
Large returns may render qualifying months ineligible. Therefore, trends in your product returns will be continually reviewed and will be treated in accordance with the current returns policy. Returns equalling or exceeding 400 PV in Australia and 200 in New Zealand will be keyed back to the month of purchase. The PV will be reworked back to the month of purchase and any progressive cash award payments paid in relation to that product will be recoverable by Amway.
New Silver Producer Qualification
It is expected that a new IBO will need to be registered for a minimum of 90 days prior to the month in which they qualify at the silver producer level for the first time
A GIP qualifier must clear any personal debts with Amway. For example, if a bonus/rebate qualifier has achieved that qualification as a consequence of the accumulation of personal or throughline debt the bonus/rebate will be withheld until the debt is satisfactorily resolved
Rules of Conduct
Resolution of outstanding Rules of Conduct issues must be addressed by the qualifying IBO. Assistance with downline IBO Rules issues is also required. It is the responsibility of IBOs to demonstrate compliance and support of the Tracking and Review Process.
Continued failure to rectify the situation may result in suspension or at worst termination of a Platinum business.
If you have any questions in relation to this document please do not hesitate to contact your Australian State Sales Manager or New Zealand Account Manager.