Core Plus - Amway

Transcription

Core PlusDiscretionaryIncentivesProgrammePerformance Year 2022

Strategic direction for AmwayAmway Business Owner successPRODUCTEXPERIENCESABOINCENTIVESDeveloping insight-driven strategies inpartnership with Amway Business Owners(ABO)Focusing on profitable and sustainablebusiness activities: structure and productpromotions to customersLEADERGROWTH SOLUTIONSDIGITALTRANSFORMATIONEncouraging a culture of product promotionCreating positive, seamless experiencesfor ABOs and customers AMWAY CORE PLUS DISCRETIONARY INCENTIVES PROGRAMME2

With the support ofthe Founding Families,Amway is investingeven more in ABOcompensation. AMWAY CORE PLUS DISCRETIONARY INCENTIVES PROGRAMME332 AMWAY CORE PLUS DISCRETIONARY INCENTIVES PROGRAMME

Solvingfor needBusiness buildersare eager to earnmeaningful incomeand recognition Leaders want tomaximize Amwaybonuses andincentives BUTBUTit can take longer thandesired to reachcompetitive earning levelsnot all businessstructures aresustainably profitable AMWAY CORE PLUS DISCRETIONARY INCENTIVES PROGRAMME4

Based on a fastchanging marketplace1Evaluated factors that affect ABO earnings2Listened to ABO leaders around the world3Benchmarked competing opportunitiesEFFORTIt can be harder to qualifyfor incentives than to earnCore Plan money butincentives may seemmore ble structures maynot be developed earlyenough which may leadto lower income andsatisfactionCUSTOMERSALESABOs want to earn incomefrom helping customers but may not be comfortablepromoting products atRetail Price AMWAY CORE PLUS DISCRETIONARY INCENTIVES PROGRAMME5

OUR ANSWERCore PlusThe global Amway Core Plus discretionary incentives programmereplaces Growth Incentive Programme(GIP) and complements the Amway Sales and Marketing Plan (Core Plan)to reward best practices in building astrong, sustainable and profitablebusiness. AMWAY CORE PLUS DISCRETIONARY INCENTIVES PROGRAMME6

Core Plusgoals1234Help new ABOs andbuilders earn moreMeet ABOs’expectations andimprove ABOengagementFurther rewardrewardFurtherprofitable andandprofitablesustainable structuresstructuressustainableOffer premiumcompensationopportunitiesfor leadersIncentives make it easierto promote products tocustomers and buildsales teams.ABOs earn sooner andstay inspiredCore Plan and Core Plus teach ways to optimizebusiness and compensationMore consistent waysfor leaders to earnmoney year after year AMWAY CORE PLUS DISCRETIONARY INCENTIVES PROGRAMME7

Rewards earlier, more oftenBonuses, incentives and recognition motivate ABOs to work toward their own goals.Core PlanCore Plus Foundational compensation for allABOs, which includes:Discretionary rewards for optimizingbusiness structure, which include:PERFORMANCE BONUSavailable to all ABOsLEADER BONUSESLeadership BonusesDepth BonusRuby BonusAnnual Emerald, Diamond and Diamond Plus BonusesAnnual Two-Time Cash Awards for Global Award RecognitionEARLY INCENTIVES* Customer Sales Incentive Bronze Foundation Incentive Bronze Builder Incentive LEADER INCENTIVES* Performance Plus and PerformanceElite Incentives Personal Group Growth Incentive Frontline Growth Incentive Two-Time Cash Incentive Customer Retail MarginFounders Achievement AwardsIncome earned on the retail profit marginAnnual discretionary incentive for high achieving ABO leaders*Core Plus Early incentives launch for Central Europe is scheduled in Q3 2021, for United Kingdom and Republicof Ireland in Q4 2021 and Southern Africa to be confirmed (tbc). ABOs will be informed in time and throughappropriate channels. AMWAY CORE PLUS DISCRETIONARY INCENTIVES PROGRAMME8

Building on investments in ABO earningsAmway’s commitment to partnership with ABOs has been demonstrated through recent enhancements to ABO compensation andrecognition. Core Plus discretionary incentives are another significant investment in compensation with important, new earningsand recognition opportunities below Platinum and premium earning opportunities for Leaders.Building a sustainable, profitable business structure is more rewarding than ever before.PY17LEADERSHIP BONUSENHANCEMENT From 4% to 6% Rewards for creatingnew PlatinumsFOUNDERS ACHIEVEMENTAWARD (FAA) BONUSREDESIGN Aligned with Core Plan Values leadership in widthand depthPY21 – PY22PY18GLOBAL AWARD RECOGNITION(GAR) Change in qualification criteriafor highest awards Recognize sustainableleadership based on downlineleader developmentCORE PLUS Launching enhanced ABO discretionaryincentives programme with maximumimpact #1 enterprise priority AMWAY CORE PLUS DISCRETIONARY INCENTIVES PROGRAMME9

Core PlanAmway Sales andMarketing PlanCore PlusDiscretionaryIncentives ProgrammeMany Core Plus incentives offer amultiplier boost to Core Plan bonuses so, ABOs can make the most bymaximizing both AMWAY CORE PLUS DISCRETIONARY INCENTIVES PROGRAMME1010

Reward andrecognizebusiness buildersbelow Platinum Offer premiumcompensationfor leaders AMWAY CORE PLUS DISCRETIONARY INCENTIVES PROGRAMME11

CORE PLUS INCENTIVESGreater rewards forbusiness buildingGROWTHINCENTIVESRETAIL MARGIN Investing in sustainable business growth for leaders New ABOs can earn more by supporting customersales and building successful teamsRETAIL MARGINCORE PLANBONUSTODAYCORE PLANBONUS WITHSTRUCTURALIMPROVEMENTSTOMORROW AMWAY CORE PLUS DISCRETIONARY INCENTIVES PROGRAMME12

A CLOSER LOOKCore PlusNew ABO andBusiness BuilderIncentives AMWAY CORE PLUS DISCRETIONARY INCENTIVES PROGRAMME13

Build the best businessCustomer SalesIncenti e CustomerSales Incentive Make more moneysupporting customer salesBronzeFoundation Incentive Get downline goingBronzeBuilder Incentive Grow a balanced businessNEW!BRONZE PINBUSINESS BUILDERS QUALIFY:BUSINESS BUILDERS QUALIFY:NEW ABOs QUALIFY: Achieve 9% Performance Bonus Achieve 15% Performance BonusBUSINESS BUILDERSQUALIFY:Have verified customer sale Help 3 legs you sponsor to achieve3% Performance Bonus Help 3 legs you sponsor to achieve6% Performance Bonus 100 PPV requirement 100 PPV requirementBelow 12% Performance Bonus*Core Plus Early incentives launch for Central Europe is scheduled in Q3 2021, for United Kingdom and Republicof Ireland in Q4 2021 and Southern Africa to be confirmed (tbc). ABOs will be informed in time and throughappropriate channels. Achieve first timeBronze BuilderIncentive AMWAY CORE PLUS DISCRETIONARY INCENTIVES PROGRAMME14

ABO compensation journeyCORE PLUS Leader IncentivesCORE PLUS Early IncentivesPerformance Plusand PerformanceElite Incentives Grow beyond12,500 Ruby PVBronzeBuilderIncentive Grow a balancedbusinessBronzeFoundationIncentive Build a team tosupport customersalesCustomer SalesIncentive Make more moneysupportingCustomerSalessalescustomer Personal GroupGrowth Incentive Earn extra on theway to FoundersFrontlineGrowth Incentive Coach qualifiersto reach FoundersTwo-TimeCash Incentive Achievehigher levelsNEW!Bronze Pin21%Incenti e15%9%1,200 PV4,000 PV10,000 PV*Core Plus Early incentives launch for Central Europe is scheduled in Q3 2021, for United Kingdom and Republicof Ireland in Q4 2021 and Southern Africa to be confirmed (tbc). ABOs will be informed in time and throughappropriate channels. AMWAY CORE PLUS DISCRETIONARY INCENTIVES PROGRAMME15

Customer Sales IncentiveNew incentive rewards ABOs up to 10% of BVon every verified customer sale(at or below 9% Performance Bonus level) ABOs can earn more money starting withtheir first verified customer sale Increased rewards for ABO closest to thesale Additional money paid by Amway on top ofretail marginIF MONTHLYPERFORMANCEBONUS IS:CUSTOMER SALEINCENTIVE IS:0%10%3%7%6%4%9%1% Creating lasting customer relationshipsCustomer SalesIncenti e TOTAL REWARD 10% OF BV*Core Plus Early incentives launch for Central Europe is scheduled in Q3 2021, for United Kingdom and Republicof Ireland in Q4 2021 and Southern Africa to be confirmed (tbc). ABOs will be informed in time and throughappropriate channels. AMWAY CORE PLUS DISCRETIONARY INCENTIVES PROGRAMME16

Make more money promotingAmway Most LovedAmway Most Loved are: Easy to understandand promote Differentiatedwith unique benefits Great for sharing, sampling ordemonstrations AMWAY CORE PLUS DISCRETIONARY INCENTIVES PROGRAMME17

Stronger businessat every levelIf New ABOs support more sales to customersBusiness builders grow strong structuresand sustainable volumePlatinum ABOs qualify every monthABO leaders focus on a balanceof width and depthThen ABOs at every level can earn higherbonuses and incentives AMWAY CORE PLUS DISCRETIONARY INCENTIVES PROGRAMME18

Premium earningsfor ABO leadersIncrease earnings by balancing widthand depth, and by growing Ruby VolumeLarger Leadership Bonuses on downline qualified legsMore income from Differential Performance Bonus onnon-qualified legsOpportunity for future frontline qualified legsAim for Ruby Bonus at20,000 Ruby PV/Volumeto maximize Core Plan and Core PlusExtra Core Plus incentive earnings AMWAY CORE PLUS DISCRETIONARY INCENTIVES PROGRAMME19

Monthly Performance Plus and Performance Elite IncentivesGrow beyond 12,500 Ruby PV to build more profitable and sustainable business.Boost monthly bonuses with rewards of up to 4% (Performance Plus 2% and Performance Elite 2% in total 4%) more beyond theCore Plan.HOW TO QUALIFYYOU EARN Monthly multiplieron your BV Earn a qualifying amount ofRuby Volume each monthAchieve min 100 PersonalPV each monthHave an approved Qualifiedmonth (Silver Producermonth)RUBY VOLUMEPerformance Plus 2%ofBVPerformance Elite Available every month an ABO qualifies.12,500 to 16,499Ruby PVMONTHLYREWARD16,500Ruby PVand above 2% (4% total) and earn Core Plan Ruby Bonus 2% (6% total) with 20,000 Ruby PV AMWAY CORE PLUS DISCRETIONARY INCENTIVES PROGRAMME20

Partial Monthly and Annual Personal Group Growth Incentive – Western Europe Southern AfricaEarn extra on the way to Founders and beyond. Build a healthy, balanced businessby continuing to grow Ruby Volume.HOW TO QUALIFYYOU EARN Earn a Personal Ruby Q(PRQ) every month youreach 10,000 Ruby PV or4,000 Ruby PV with minone 21% Leg. Increase ormaintain your total PRQseach year to earn more.Minimum 1,200 Annual PPVrequirement 10% monthly multiplieras long as the ABO istracking for PRQ basecomparing to last PYAnnual multiplier onPerformance Bonusfrom each qualifiedmonthNUMBER OF PRQsCOMPARED TOPRIOR YEAR:ANNUALMULTIPLIER IS:Maintain PRQs20 % 1 to 5 PRQs40 % 6 and up50 %of PerformanceBonus inPRQ monthsAvailable to all qualifying ABOs every year. OnlyPerformance Bonus in qualifying months will beused in year-end calculation. AMWAY CORE PLUS DISCRETIONARY INCENTIVES PROGRAMME21

Annual Frontline Growth IncentiveWestern Europe & Southern AfricaHelp downline leaders reach Founders Platinum. Keep increasing the number ofstrong, qualifying legs and get rewarded every year.HOW TO QUALIFY Earn a Frontline Q (FQ) forevery month an in-marketdownline leader qualifies at21% Performance Bonusbracket. Increase or maintainyour total FQs each year toearn more.Minimum 1,200 AnnualPersonal PV requirementYOU EARNAnnual multiplieron total Leadership, FosterLeadership and DepthBonusesNUMBER OFFRONTLINE QsCOMPARED TOPRIOR YEAR:ANNUALMULTIPLIER IS:Maintain FQs30 % 1 to 5 FQs50 % 6 and up60 %of totalMonthlyLeadership,FosterLeadershipand DepthBonusesAvailable annually to qualified FoundersPlatinum and above. AMWAY CORE PLUS DISCRETIONARY INCENTIVES PROGRAMME22

Annual Two-time Cash IncentiveAchieve higher levels. New Platinum, Sapphire, Emerald and Diamond ABOs can qualifyfor an incentive the first time they reach a pin and earn another incentive by requalifyingthe next Performance Year.HOW TO QUALIFYGrow and earn a new pin level –then requalify the secondconsecutive Performance Year.1Emeraldthrough Founders Diamond ABOs must qualifywith in-market legs only. European legs are counted as inmarket legs. Eligibility is determined by Emerald BonusRecipient and/or Diamond Bonus Recipient record fromBase Year PY15.YOU EARNAnnual cash rewardsNEW PIN LEVELFIRST YEARSECOND YEARPlatinum11,000 ZAR32,000 ZARFounders Platinum21,000 AR63,000 ZARSapphire28,000 ZAR84,000 ZARFounders Sapphire40,000 ZAR130,000 ZAREmerald60,000 ZAR170,000 ZARFounders Emerald70,000 ZAR210,000 ZARDiamond90,000 ZAR260,000 ZARFounders Diamond110,000 ZAR320,000 ZAR AMWAY CORE PLUS DISCRETIONARY INCENTIVES PROGRAMME23

Build for leader profitabilityPerformance Plusand Performance PlusElite Incentives Earn beyond 12,500Ruby PVPersonal GroupGrowth Incentive Earn extra on theway to FoundersFrontlineGrowth Incentive Coach qualifiers toaim for FoundersTwo-Time CashIncentive Achievehigher levelsQUALIFY:QUALIFY:QUALIFY:QUALIFY:Increase or maintain totalPersonal Ruby Qs each yearIncrease or maintain totalFrontline Qs each yearEarn new pin levels,then requalifyEarn a qualifying amountof PV each month AMWAY CORE PLUS DISCRETIONARY INCENTIVES PROGRAMME24

Long-termleader benefitsHelp Platinums grow to and maintain Founders Leaders can earn more through GAR and FAAHelp existing legs stay qualified Leaders can focus on building and developing new legsand downline leadersCreate consistency across markets and align with Core Plan Leaders don’t ha e to choose between building to apin and building incomeAllow for more predictability with long-term programme Leaders can better plan for long-term growth AMWAY CORE PLUS DISCRETIONARY INCENTIVES PROGRAMME25

Amway Sales and Marketing Plan. Reward and recognize business builders below Platinum Offer premium compensation for leaders AMWAY CORE PLUS DISCRETIONARY INCENTIVES PROGRAMME 11 AMWAY CORE PLUS DISCRETIONARY INCENTIVES PROGRAMME 12 CORE PLUS INCENTIVES CORE PLAN BONUS CORE PLAN BONUS WITH STRUCTURAL