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INTRODUCING

Core Plus+
Discretionary
Incentives Program

+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM CONFIDENTIAL. FOR ADS USE ONLY. NOT FOR USE WITH PROSPECTS. © 2019.
Strategic direction for Amway
DIRECT SELLER SUCCESS
Developing insight-driven strategies
PRODUCT ADS
EXPERIENCES
in partnership with ADS
INCENTIVES

Focusing on profitable and sustainable


business activities: structure and
product sales to customers
Encouraging a product selling culture
LEADER GROWTH DIGITAL
SOLUTIONS TRANSFORMATION Creating positive, seamless experiences
for ADS and customers

+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM 2


With the support of
the founding families,
Amway is investing
even more in
business owner
compensation

+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM 3


SOLVING FOR NEED

Business builders are eager Leaders want to maximize


to earn meaningful income Amway bonuses and
and recognition incentives

BUT BUT

It can take longer than Not all business structures


desired to reach competitive are sustainably profitable
earning levels

+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM 4


BASED ON A FAST
CHANGING EFFORT
It can be harder to qualify

MARKETPLACE for incentives than to earn


Core Plan money… but
incentives may seem more
attractive
1
Evaluated factors that affect ADS earnings
ADS
2 EARNINGS
Listened to ADS leaders around the world

3 CUSTOMER SALES STRUCTURE


ADS want to earn income Sustainable structures may
from helping customers… not be developed early
Benchmarked competing opportunities
but may not be comfortable enough… which may lead
selling products at to lower income and
DIRECT FLEXIBLE Suggested Retail Price satisfaction
SELLING WORK TRADITIONAL
COMPANIES OPTIONS INDUSTRIES
+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM 5
INTRODUCING
The global Amway™ Core Plus+ discretionary incentives
Core program replaces GIP and complements the Amway™
ADS Compensation Plan (Core Plan) to reward best
Plus + practices in building a strong, sustainable business.

+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM 6


CORE PLUS+ GOALS

1 2 3 4
Help new ADS Meet direct sellers’ Further reward Offer premium
and builders expectations and improve profitable and compensation
earn more ADS engagement sustainable structures opportunities for leaders
Incentives further Direct Sellers earn Core Plan and Core More consistent ways for
encourage selling to sooner and stay Plus+ teach ways to leaders to earn money
customers and building inspired optimize business and year after year
sales teams compensation

+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM 7


REWARDS EARLIER, MORE OFTEN
Commissions, incentives and recognition motivate direct sellers to work toward their own goals.

Foundational compensation for all


direct sellers, which includes:

Retail Margin

Founders Achievement Awards (FAA) Trade Discount

+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM 8


BUILDING ON INVESTMENTS IN ADS EARNINGS
Amway’s commitment to partnership with direct sellers has been demonstrated through recent enhancements to ADS
compensation and recognition. Core Plus+ discretionary incentives are another significant investment in compensation with
important, new earnings and recognition opportunities below Platinum and premium earning opportunities for Leaders.

Building a sustainable, profitable business structure is more rewarding than ever before.

2017 2018 2019

LEADERSHIP COMMISSION FAA COMMISSION GLOBAL AWARD CORE PLUS+


ENHANCEMENT REDESIGN RECOGNITION

❑ From 4% to 6% ❑ Aligned with Core Plan ❑ Change in qualification ❑ Launching enhanced ADS
❑ Rewards for creating ❑ Values leadership in width criteria for highest awards discretionary incentives
new Platinums and depth ❑ Recognize sustainable program with maximum
leadership based on impact
downline leader ❑ #1 enterprise priority
development

+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM FOR INTERNAL USE ONLY – NOT FOR USE WITH ADS 9
Core Plus+ Many Core Plus+ incentives
DISCRETIONARY INCENTIVES
PROGRAM
offer a multiplier boost to
Core Plan bonuses…

…so, direct sellers can


Core Plan make the most by
ADS COMPENSATION PLAN maximizing both

+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM 10


Reward and recognize
business builders
below Platinum
+
Offer premium
compensation
for leaders
+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM 11
GREATER REWARDS CORE PLUS+
INCENTIVES
FOR BUSINESS-
BUILDING GROWTH
INCENTIVES
TRADE DISCOUNT

RETAIL MARGIN

• Investing in sustainable business TRADE DISCOUNT

growth for leaders RETAIL MARGIN


CORE PLAN
• New ADS can earn more for selling COMMISSION WITH
STRUCTURAL
and building teams that sell CORE PLAN IMPROVEMENTS
COMMISSION

TODAY TOMORROW

+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM 12


A CLOSER LOOK

Core Plus+
NEW ADS AND
BUSINESS BUILDER
INCENTIVES
+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM 13
BUILD THE BEST BUSINESS
Customer Sales Incentive+ Bronze Foundation Incentive+ Bronze Builder Incentive+
Make more money selling Get downline going Grow a balanced business NEW!
NEW ADS QUALIFY: BUSINESS BUILDERS QUALIFY: BUSINESS BUILDERS QUALIFY: BRONZE PIN
Sell to Verified Customers • Achieve 9%+ Performance • Achieve 15%+ Sales Commission
Commission • Help 3 teams you sponsor sell
• Help 3 teams you sponsor sell products to achieve 6%+ Performance
products to achieve 3%+ Sales Commission
Commission

+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM 14


ADS COMPENSATION JOURNEY CORE PLUS+
Leader Incentives

Two-Time
CORE PLUS+ Personal Group Frontline Growth Cash
Early Incentives Growth Incentive+ Incentive+ Incentive+
Earn extra on the Coach qualifiers Achieve
way to Founders to reach Founders higher levels

Bronze Builder
Incentive+
Bronze Grow a balanced
Foundation business
Incentive+
Customer Sales
Incentive+ Build a team to
NEW!
sell products
Make more Bronze Pin
money selling
products to
customers

9% 15% 21%

1,200 PV 4,000 PV 10,000+ PV


+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM 15
CUSTOMER SALES INCENTIVE+
New incentive rewards direct sellers up to
10% of NSV on every verified customer IF MONTHLY
CUSTOMER SALES
PERFORMANCE
sale COMMISSION IS:
INCENTIVE+ IS:

(at or below 9% Sales Commission level)


0% 10%
• ADS can earn more money starting with 3% 7%
their first verified customer sale
6% 4%
• Increased rewards for direct seller closest to
9% 1%
the sale
TOTAL REWARD
• Additional money paid by Amway on top of
any retail margin = 10% OF BV
• Creating lasting customer relationships

+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM 16


MAKE MORE MONEY
SELLING WITH
CUSTOMER FAVORITES
Customer Favorites are:
• On-trend
• Easy to understand and sell
• Differentiated with unique benefits
• Great for sharing, sampling or demonstrations

Product photos are representative; availability may vary by market. +AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM 17
BRONZE INCENTIVES
BRONZE FOUNDATION INCENTIVE+ BRONZE BUILDER INCENTIVE+
Build a team of at least three ABOs who Earn a multiplier on your monthly Performance
sell products and achieve 3% Performance Commission by helping three ABOs you
Commission level to earn a multiplier on personally sponsor achieve 6% Performance
your monthly Performance Commission Commission level while you achieve a 15%
Earn up to 12 months Performance Commission
Earn up to 12 months
9% – 1,200+ Team POINTS 15% – 4,000+ Team POINTS
3 Teams EARN 3 Teams EARN
3% Performance Commission 6% Performance Commission

+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM +AMWAY™


CONFIDENTIAL. FOR CORE
ABO USE PLUS
ONLY. NOTDISCRETIONARY INCENTIVES PROGRAM
FOR USE WITH PROSPECTS. © 2019. 18
NEW: BRONZE PIN
Qualify for Bronze Builder Incentive+ to receive the new pin…
and set a path to Silver, Gold, Platinum and beyond

Income at 15% Recognizes


Can help reduce time to Sales Commission is HEALTHY
FIRST RECOGNITION
~2x HIGHER STRUCTURES

*United States data +AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM 19


BUILDING A STRONG BRONZE BUSINESS
A business owner can earn the Bronze Foundation Incentive+, continue to build their business, and also earn the Bronze
Builder Incentive+ during the 12-month eligibility period for the Bronze Foundation Incentive+.

Two important incentives and the Bronze pin for strong business-building practices.

Month 1 2 3 4 5 6 7 8 9 10 11 12

9% 12% 6% 6% 9% 6% 12% 15% 15% 15% 18% 15%


PRODUCTIVITY
3 x 3% 3 x 3% no 3 x 3% 3 x 3% no 3 x 3% 3 x 6% 3 x 6% 3 x 6% 3 x 6% 3 x 6%

BRONZE
FOUNDATION
INCENTIVE+

BRONZE
BUILDER
INCENTIVE+

+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM 20


STRONGER BUSINESS AT EVERY LEVEL

IF THEN

New ADS sell more to customers

Business builders grow strong structures ADS at every level can


and sustainable volume
earn higher
Platinum ADS qualify every month commissions and
incentives
ADS leaders focus on a balance
of width and depth

+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM 21


PREMIUM EARNINGS
FOR ADS LEADERS Aim for Enhanced
Increase earning by balancing width
Sales Commission
and depth, and by growing Enhanced
Sales Volume (Ruby Volume)
at 20,000 Enhanced
• Larger Leadership Development
Sales Points to
Commissions on downline
qualified teams
maximize Core Plan
• More income from Differential and Core Plus+
Sales Commission on
nonqualified teams
• Opportunity for future frontline
qualified teams
• Extra Core Plus+ incentive
earnings
+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM 22
PERSONAL GROUP GROWTH INCENTIVE+
Earn extra on the way to Founders and beyond. Build a healthy, balanced business
by continuing to grow Enhanced Sales Volume.

HOW TO QUALIFY YOU EARN


NUMBER OF PQs
ANNUAL
COMPARED TO
Earn a Personal Q (PQ) every month you Annual multiplier on PRIOR YEAR:
MULTIPLIER IS:
reach 10,000 Enhanced Sales Volume or Sales Commission from
4,000 Enhanced Sales Volume with a 21% each qualified month
Leg. Increase or maintain your total PQs Maintain PQs 10%
each year to earn more.
+1 to 2 PQs 20% of Sales
Commission
in
+3 to 5 PQs 30% PQ months
Available to all qualifying Silver Producer
and above every year. Only Sales +6 PQs or more 40%
Commission in qualifying months will be
used in year-end calculation.

+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM 23


FRONTLINE GROWTH INCENTIVE+
Help downline leaders reach Founders Platinum. Keep increasing the number of strong, qualifying
teams and get rewarded every year.

HOW TO QUALIFY YOU EARN NUMBER OF


FRONTLINE Qs ANNUAL
Earn a Frontline Q for every month an in- Annual multiplier COMPARED TO MULTIPLIER IS:
market downline leader qualifies at 21% on total Leadership Development PRIOR YEAR:
Sales Commission bracket. Increase or Commission
maintain your total Frontline Qs each year and Group Development Maintain FQs 10%
to earn more. Commission
+1 to 2 FQs 20% of total
Monthly Core
Plan
+3 to 5 FQs 30% Commissions

Available annually to Founders Platinum +6 or more FQs 40%


and above.

+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM 24


TWO-TIME CASH INCENTIVE+
Achieve higher levels. New Platinum, Sapphire, Emerald and Diamond ADS can qualify for an
incentive the first time they reach a pin, and earn another incentive by requalifying the next year.

HOW TO QUALIFY YOU EARN


Grow and earn a new pin level – then Annual cash rewards
requalify the second consecutive year.

• Emerald through Founders Diamond ADS


must qualify with in-market teams only.
• For in market Emerald & above, the
qualification history will be checked since
PY’15 (Sep’14)

+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM 25


BUILD FOR LEADER PROFITABILITY
Personal Group Frontline Growth Two-Time Cash
Growth Incentive+ Incentive+ Incentive+
Earn extra on the way Coach qualifiers Achieve higher levels
to Founders to aim for Founders
QUALIFY:
QUALIFY: QUALIFY: Earn new pin levels,
Increase or maintain total Increase or maintain total then requalify
Personal Qs each year Frontline Qs each year

+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM 26


LONG-TERM LEADER BENEFITS
Core Plus+ can…

• Help Platinums grow to and maintain Founders


Leaders can earn more through GAR and FAA

• Help existing teams stay qualified


Leaders can focus on building and developing new teams and downline leaders

• Create consistency across markets and align with Core Plan


Leaders don’t have to choose between building to a pin and building income

• Allow for more predictability with long-term program


Leaders can better plan for long-term growth

+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM 27


APPENDIX

+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM FOR INTERNAL USE ONLY – NOT FOR USE WITH ADS 28
READY WITH
SUPPORT
LGS Strategic Consultation

• Prepare your teams to make the


most with Core Plus+
• Consultants can provide tools
and information to help you set
KPI-specific goals and plan for
a profitable, qualifying future

+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM 29


COMMUNICATIONS TOOLS

+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM 30


ROBUST TRAINING
RESOURCES
• Leverage new, comprehensive
training courses for New ADS,
Business Builders and Leaders
to teach Core Plus+ incentives

• Tools to help you and your team


build selling skills and grow
sustainable businesses

+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM 31


Core
Plus+
Discretionary
Incentives
Program

+AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM +AMWAY™ CORE PLUS DISCRETIONARY INCENTIVES PROGRAM 32

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