Understanding the Amway compensation plan isn’t really necessarily hard, offered you do a little research and have a fundamental understanding of some standard marketing principles.
Amway, and its sister business Quixtar (now Amway Global), are business that deal with a multi-level marketing (MLM) or direct selling model.
Often disparagingly called pyramid schemes, a multi-level marketing system needs each affiliate (independent business owners who promote Amway products, services and business opportunity but who are not employees of Amway) to recruit more people to work for him or her, who in turn recruit even more business builders.
A portion of the money those people produce through product sales goes up to you, and the product volume you produce moves up to individuals who sponsored you.
Amway Pay Plan
The idea is really one of leveraged income.
You get paid on your sales volume and the entire sale volume of your distribution network.
Which sounds really good in theory…
- You sponsor two, who
- Sponsor two, who
- Sponsor two, etc
… and everyone gets rich.
The unfortunately reality, however, is the MAJORITY of people who join Amway will never make a profit.
Which should not be a reflection on the company, the products, service or the “Amway compensation plan” – it is more reflection on the lack of honest business building and marketing skills by the independent distributor.
You can review a copy of the most recent average earnings here.
Amway MLM Plan
Amway IBOs (independent business owners) are compensated in 2 ways.
First, they get a commission on the products they personally sell. Then they get a bonus for all the sales made by the people under them.
This perk can be as little as 3 percent or as much as 25 percent of the month-to-month sales value if you have numerous people under you.
Nevertheless, part of the plan is to “sell to yourself;” that is, to urge IBO’s to purchase the products they then earn commission on. Moreover, the business’s products are tend to be overly pricey, making them hard to sell to people outside the Amway/Quixtar company.
New Compensation Plan Rules
If you are not 1000% committed to joining Amway after reading this Amway Compensation Plan review – let me share a quick story about how my LOVE AFFAIR with traditional MLM and network marketing kept me broke and struggling for over 30 years – and how one tiny little change (thanks to the internet) helped us rake in over $711,322 in commissions in just 22 months. Because some pay plans are just better than others!