Amway - Direct Distributor Incomes">
The organizational structure presented in the SA-4400 shows a completely symmetrical organization where everybody is doing exactly the same thing. Common sense is going to tell you that this rarely, if ever, happens. The example in the SA-4400 is just to show you the concept and not reflect what a Direct Distributor makes.
On this page, I am going to show the performance bonus a Direct Distributor will keep using a few different organizational structures. It is not intended to acurately reflect the income of a Direct Distributor. There are other bonuses that qualified directs receive. For example, if you maintain a minimum of 7,500 points (you'll learn more about points later) for 12 months out of 12, you will qualify for a free trip and a bonus that may amount to several thousand dollars. The exact amount changes year to year and also depends on what your overall volume was. You should contact a distributor to find out more about this bonus, which is called Q12 and also about the Profit Sharing bonus.
There will also be profit from retail sales. The example given in the SA-4400 shows only 60 BV (business volume not real dollars -- you'll learn more about these later) profit from buying/selling 100 points of volume. It is impossible to give you any type of average of how much a direct distributor makes from retail sales. Using the 30% average markup from distributor cost to Amway suggested retail, you can make a guesstimate of what that would be.
The most important thing to remember about Amway bonuses is the structure of your organization. If a person only has a few people sponsored, it doesn't matter what their volume is, they are not profitable. They may get a big 25% performance bonus check, but they don't keep much of it as personal profit.
| A leg at 4000 PV, 2500 PV, 1000 PV and 4 at 100 PV | |
| 4000 bonus | $1,680 |
| 2500 bonus | $ 900 |
| 1000 bonus | $ 240 |
| 4 @ 100 PV Bonus | $ 24 |
| Total | $2,844 |
| Bonus Check | $3,950 |
| DD Profit | $1,106 |
| 3 Legs at 2500 PV, 4 at 100 | |
| 2500 bonus x 3 | $ 2,700 |
| 4 @ 100 PV Bonus | $ 24 |
| Total | $2,724 |
| Bonus Check | $3,950 |
| DD Profit | $1,226 |
| 3 Legs at 2000 PV, 1 leg at 1500, 4 legs at 100 | |
| 2000 bonus x 3 | $ 1,800 |
| 1500 bonus | $ 450 |
| 4 @ 100 PV Bonus | $ 24 |
| Total | $2,274 |
| Bonus Check | $3,950 |
| DD Profit | $1,676 |
| 1 leg at 1500, six at 1000 PV, 4 at 100 PV | |
| 1500 bonus | $ 450 |
| 1000 bonus x 6 | $ 1,440 |
| 4 @ 100 PV Bonus | $ 24 |
| Total | $1,914 |
| Bonus Check | $3,950 |
| DD Profit | $2,036 |
You should also bear in mind that this is just a snap-shot of one month. As with any business, volume will fluctuate monthly, both up AND down. People don't always buy, excuse me, sell the same amount month after month. Also a distributor organization should have new people coming in every month, and in spite of what a distributor tells you, there will be some leaving the business every month.
Obviously, the more legs that you personally have sponsored, the greater your income. I've heard several high-level distributors talk about building the business "smart" and having 10 growing legs at the Direct Distributor level. They are so correct. But Bill Britt, a Crown Ambassador, has stated on numerous occasions that statistics from his business over the last 25+ years show that when a distributor sponsors 12 people, 3 or 4 legs will actually work the business and drive the distributor to direct. As you can see in these examples, a direct with 2 or 3 active growing legs and a few "incubators" is going to have approximately 1/2 to 2/3 of the performance bonus that the SA-4400 example shows. It's not until you have more than four or five legs do you get close to the amounts shown in the SA-4400.
When you are shown the plan, you are probably told that this is just an example to show you how the business works and that you'll get a brochure that explains all of it. They should also tell you that the brochure contains the average incomes of active distributors and the average bonus checks paid by Amway at various pin levels. The average monthly performance bonus paid to direct distributors in fiscal year 1995 was $1,352, a decrease of $22 from fiscal year 1994. This is not net income...this is the performance bonus check paid by Amway and does not take into account downline bonuses or expenses.
This low average really bothered me for quite some time until I realized that you can be a direct distributor without getting a 25% bonus check every month. You are a direct if you qualify at 7,500 points for six months out of the year. You could have 0 pv for the other six and you would still be a qualified Direct Distributor.
Another way you can maintain DD status is to sponsor someone who maintains 7,500 points for six months out of the year and you maintain 2,500 points for six months out of the year.
Whatever the average income of a DD is, you can see from the examples above that anywhere from 50% to 75% of the performance bonus money received by a direct distributor is paid to downline distributors. But there are other ways that direct distributors and above can make money. You will learn about these in subsequent pages.
