2016 GROWTH INCENTIVES FAQs - Homestead

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2016 GROWTHINCENTIVES FAQsThe Amway Growth Incentives Program (GI Program) is a collectionof discretionary programs separate from the IBO Compensation Planthat can vary from year to year. IBO eligibility for the GI Program is atAmway’s discretion. The GI Program is available only to IBOs whoseconduct demonstrates high ethical and business standards alignedwith the goals and objectives of Amway and its related businesses.2016 GROWTH INCENTIVES PROGRAMGENERAL QUESTIONS. 1BASELINE REQUIREMENTS. 3TWO-TIME CASH AWARDS. 5PLATINUM PLUS MONTHLY CASH AWARDS. 7Q7–Q11 MONTHLY CASH AWARDS. 8Q12 CASH AWARDS. 9LEADER DEVELOPMENT CASH AWARDS. 12FAST TRACK INCENTIVE PROGRAM – ENHANCED. 16BUSINESS CONFERENCE QUESTIONS. 16

GENERAL QUESTIONSQ. 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 ofqualification, in FY2015 to requalify. The Q7-11 monthly incentive that rewards non-Q12 Platinums for growing from 6-month qualifiers to12-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 FoundersDiamonds 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.–A t a minimum of 60 frontline Qs, maintain 7,500 Personal Group/RUBY for all 12 months of thefiscal year (90,000 annually) to qualify for growth level awards. (See page 16 for all the details forthis incentive.) N OTE: IBOs must either maintain or grow over their previous year’s Q baseline. No Leader DevelopmentCash Award will be paid if the number of Qs is lower than the previous year’s baseline regardless ofmeeting 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 adiscretionary program and Amway reserves the right to change/enhance the program as appropriatethroughout its duration.Q. What is Award Volume?Award Volume includes your personal PV plus pass-up volume from downline non-25% legs. Award Volumeincludes pass-up from downline Platinums in those months that are not qualified at 25%.The average monthly Gross Income for “active” IBOs was USD 183 (in the U.S.)/CAD 206 (in Canada) in 2013.Approximately 53% of IBOs in the U.S. and 49% of IBOs in Canada were “active.”IBOs were considered “active” in months in 2013 when they attempted to make a retail sale, or presented the Amway Independent BusinessOwner Compensation Plan (IBO Compensation Plan), or received bonus money, or attended an Amway or IBO meeting. If someone sustainedthat 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 everyIBO chooses to be active every month. “Gross Income” means the amount received from retail sales, minus the cost of goods sold, plus monthlybonuses and cash incentives. It excludes all annual bonuses and cash incentives, and all non-cash awards, which may be significant. Theremay also be significant business expenses, mostly discretionary, that may be greater in relation to income in the first years of operation. For thepurposes 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 mayqualify for the Amway Growth Incentives Program (GI Program), a collection of discretionary programs separate from the IBO Compensation Planand 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 whoseconduct 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 endingAugust 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 registeringas an IBO, individuals should read and understand the Amway Business Overview Brochure, which contains important information for thoseinterested in becoming IBOs.FOR IBO USE ONLY – NOT FOR USE WITH PROSPECTS1

Q. What is Personal Group/Ruby (PG/Ruby) Volume and how does it differ fromAward Volume?PG/Ruby is designated as Ruby Volume on your PV/BV Inquiry. It includes Personal PV plus pass-upvolume from downline non-25% Silver Producer legs. PG/Ruby differs from Award Volume only whenan IBO breaks a qualified Platinum leg. Once the Platinum breaks, they cannot include volume from thatPlatinum 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 qualifiedPlatinum 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 Platinumin 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 Awardsmay require growth over last year’s frontline Q baseline for qualification. One frontline IBO can generatea maximum of 12 Qs to the upline during any given fiscal year, however there is no limit to the number offrontlines 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 hadthe previous year. Some 2016 programs, including Q12 and the Leader Development Awards, may requiregrowth 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 qualificationand 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 PlatinumMonths plus 108,000 TOTAL PV (a total of all PV generated in the leg). A leg qualifying using volumeequivalency, while they may have only 10 or 11 months, will count for the upline as having 12 qualifiedmonths and generating 12 Qs upline. As a result, their Q baseline for the following fiscal year will beadjusted accordingly.The average monthly Gross Income for “active” IBOs was USD 183 (in the U.S.)/CAD 206 (in Canada) in 2013.Approximately 53% of IBOs in the U.S. and 49% of IBOs in Canada were “active.”FOR IBO USE ONLY – NOT FOR USE WITH PROSPECTS2

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 Q12Growth Payment requiring at least 6 additional Qs would need to have 6 more Qs in 2016 than they had in2015. If the number of Qs they had coming in to the year was 6, they would need to end the year with 12 Qs tomeet 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 thefiscal year. xample: an IBO has 3 legs, all of whom have qualified all months through July for a total of 21 Qs YTD. Their MAXEQ Tracking, assuming all 3 legs continued to qualify all remaining months of the fiscal year, would be 36.Max TrackSFL Leg1QFL Leg2QFL Leg2ONDJFMAMJJQQQQQQQQQQQQQQ242721AAs ofSeptAs ofFebAs ofJulyQ1283121010097QA Frontline leg contributes to the Max Q Tracking calculation at the point of its first 25% month in the FYMax Q Tracking assumes the Frontline leg will reach the 25% level for all of the remaining months in the FYBASELINE REQUIREMENTSQ. 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, BaselineRequirements 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) and2) Average 50 Qualified Customer PV (QCPV) each month (600 annually) and3) Complete six Training Credits and4) Have a signed Amway contract on file and5) H ave a signed Silver Producer Acknowledgement (SPA) on file (applies only to those Silver Producerswho qualified 9/1/11 or later) and6) M ust be in good standing and demonstrate high ethical and business standards aligned with the goalsand objectives of Amway and its related businesses.Q: If an IBO doesn’t meet the baseline requirements, can they make them up after thequalification year closes?No. ALL baseline requirements MUST be met prior to the close of the Fiscal Year to qualify for GI CashAwards. No exceptions will be made for IBOs who fall short at the end of the fiscal year. IBOs can track theirprogress by viewing their GI Reports online. Additionally, Amway sends IBOs a monthly email showing all theAwards they may be tracking for and baseline requirements year-to-date.The average monthly Gross Income for “active” IBOs was USD 183 (in the U.S.)/CAD 206 (in Canada) in 2013.Approximately 53% of IBOs in the U.S. and 49% of IBOs in Canada were “active.”FOR IBO USE ONLY – NOT FOR USE WITH PROSPECTS3

Q. What is the Silver Producer Acknowledgement (SPA)?The Silver Producer Acknowledgement (SPA) is a form/card that must be completed that acknowledges anIBO’s new Silver Producer status and their IBO responsibilities. An SPA card must be on file for new SilverProducers qualifying after 9/1/11 in order to receive a GI Cash Award. This does not apply to IBOs who wereSilver 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 toAmway 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 PersonalPV 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 earnthe cash bonus so it’s best that IBOs meet this requirement each month (rather than relying on averaging) tomaximize 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 salesto 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’s50 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 coursesor attending Amway Instructor-led Training (ILT) courses at Accreditation Plus Approved Provider orAmway-sponsored events. Online courses that IBOs complete will automatically be tracked and willshow 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 CashAwards or trips.)Q. Will seminars, books, and tapes offered through an Approved Provider count for trainingcredits?No.The average monthly Gross Income for “active” IBOs was USD 183 (in the U.S.)/CAD 206 (in Canada) in 2013.Approximately 53% of IBOs in the U.S. and 49% of IBOs in Canada were “active.”FOR IBO USE ONLY – NOT FOR USE WITH PROSPECTS4

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 theirmonthly GI Tracking Reports online at Amway.com Business Center Business Reports GI TrackingReport. Additionally, all Platinums will receive a monthly email from their National Account Rep. IBOs mayalso 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 AWARDSQ. 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 ayear-to-date average of 50/150 in the same month they qualify for the Award; must have a signed Amwaycontract on file; and must have a signed Silver Producer Agreement (SPA) on file (IBOs who qualifiedSilver Producer prior to 8/31/11 do not need a signed SPA on file). No training credits are required to earna Two-Time Cash Award but it’s in every IBO’s best interest to complete at least 6 training credits as theymay 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 thequalification year closes?No. ALL baseline requirements MUST be met prior to the close of the Fiscal Year to qualify for GI CashAwards. No exceptions will be made for IBOs who fall short at the end of the fiscal year. IBOs can tracktheir progress by viewing their GI Reports online. Additionally, Amway sends IBOs a monthly emailshowing 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 thanone 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 theybe 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 goeson to qualify Founders Platinum, Sapphire, and Founders Sapphire in 2016 will not only earn theirFirst-Year Cash Awards for new Founders Platinum, Sapphire, and Founders Sapphire, they will alsoearn the second-year Solidification Awards for Gold Producer and Platinum. This assumes all baselinerequirements 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 overlapstheir 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 theirqualification by overlapping into a new fiscal year will receive their 2,000 or 3,000 First-Time CashAwards AFTER they have completed 3 (for Gold Producer) or 6 (for Platinum) within a fiscal year.Example:The average monthly Gross Income for “active” IBOs was USD 183 (in the U.S.)/CAD 206 (in Canada) in 2013.Approximately 53% of IBOs in the U.S. and 49% of IBOs in Canada were “active.”FOR IBO USE ONLY – NOT FOR USE WITH PROSPECTS5

eIn the example above, this IBO started their Platinum qualification in October 2016. They completed their qualificationin September 2017 by rolling over to FY2017 and will be recognized as a Platinum at that time. However, they will notreceive their First-Time Cash Award or an invitation to attend their New Platinum Conference until they’ve actuallycompleted 6 months within a fiscal year. In this case, they qualified their 6th month in February 2017 and will receivetheir 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 businessin year two?Yes. An IBO can solidify/maintain for one year and still get a Second-Year Solidification Award equivalentto 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 baselinerequirements would they still be eligible to receive the Second-Year Award if they requalifythe 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 theSecond-Year Solidification Award in 2016?Yes.Q. Is there a Comeback Founders Platinum Bonus also?No.The average monthly Gross Income for “active” IBOs was USD 183 (in the U.S.)/CAD 206 (in Canada) in 2013.Approximately 53% of IBOs in the U.S. and 49% of IBOs in Canada were “active.”FOR IBO USE ONLY – NOT FOR USE WITH PROSPECTS6

Q. Would an IBO who qualifies Platinum in 2014, but doesn’t requalify in 2015, be eligiblefor 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 requalifyin FY2016 can earn the Platinum Comeback Award in 2016.Q. If an Emerald Pin that qualified in FY2015 with two North American legs and oneinternational leg adds a fourth leg in North America, thus earning an Emerald Bonus, will theybe 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 AWARDSQ. 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 mustattain 50/150 in the month qualifying for the Award; must have a signed Amway contract on file; and musthave a signed Silver Producer Agreement (SPA) on file (IBOs who qualified Silver Producer prior to 8/31/11do 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 thequalification year closes?No. ALL baseline requirements MUST be met prior to the close of the Fiscal Year to qualif

The Amway Growth Incentives Program (GI Program) is a collection . Diamonds for qualifying and requalifying the very next year. New in 2016: Enhancements to the Leader Development Awards . 2015. If