Coaching for Profitability Course Scenario 2013 Amway Corp

Coaching for Profitability Course Scenario © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing.

Welcome New Platinums Leaders! “Business Building” © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing.

What effect may more profitable IBOs have on your business? IBOs who earn more renew more. © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 4

No Photos, Video, or Audio Recording © 2013 Amway Corp. All rights reserved. For

ge a P Objectives 2 Learn: • 3 -Step Profitability Coaching • Platinum-specific considerations © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 6

The Amway Business Modeler 1. Model income effects of volume, Available Retail Margin, Fast Track Incentive Program, new IBOs, new legs, and more! 2. Attach personalized notes, save, print, and share. 3. Multiple languages and regions. 4. For i. OS, Android, PC, and Mac. © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 7

3 -Step Profitability Coaching Structure Volume Fast Track Incentive Program © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 8

Step 1: Focus on Volume ge a P 3 Review, teach, and encourage: ü Personal Volume ü Retailing Volume ü Customer Volume Rule compliance © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 9

Review Personal Circle Volumes © 2013 Amway Corp. All rights reserved. For IBO use

How could this IBO earn a Differential Bonus? ! $0 rd eboa Whit © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 11

Example: Being CVR Compliant and Earning a Greater Performance Bonus + $93/mo ! © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 12

How much PV can be counted as Customer Volume towards the Fast Track Incentive Program? ge a P 5 2013 East 4 th. St. 2013 Main St. IBO: (1) Case XS® Energy Drink (1) NUTRILITE™ Double X 31 Day Refill Total PV: 31. 61 IBO’s Friend: (1) Case XS® Energy Drink Total PV: 10. 32 IBO’s Brother: (1) Case XS® Energy Drink Total PV: 10. 32 rd eboa Whit © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 13

How much PV can be counted as Customer Volume towards the Fast Track Incentive Program? 2013 Main St. IBO: (1) Case XS® Energy Drink (1) NUTRILITE™ Double X 31 Day Refill Total PV: 31. 61 The Customer Sales Activity system (‘Report Sale/Create Receipt’) requires each customer 2013 East 4 th. St. to be have a unique address counted as. IBO’s Qualified Customer PV. Friend: (1) Case XS® Energy Drink Total PV: 10. 32 IBO’s Brother: (1) Case XS® Energy Drink Total PV: 10. 32 © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 14

Review, Teach, and Encourage: Available Retail Margin + $61/mo © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 16

Review, Teach, and Encourage: Product Mix Water, Weight Mgmt, Cosmetics: XS Energy: Personal Care: Home Care: 20% 30% 25% Vit. , Min. and Supp. Water, Weight Mgmt, Cosmetics: XS Energy: Personal Care: Home Care: 70% 10% 5% 5% + $21/mo © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 17

ge a P Teach: Profitability Differences More Profitable VMS & Skin Care ARM: 35% BV/IBOC: 1. 20 6 Less Profitable Home Care & XS Energy ARM: 15% BV/IBOC: 1. 00 Other Health and Beauty Products Personal Care ARM: 15% - 35% BV/IBOC: . 85 FREE Course: “Making Money” BV more than IBO Cost BV equals IBO Cost BV less than IBO Cost © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 18

Teach: Profitability Differences When considering profitable products: • Is the BV higher than IBO Cost? • Is the BV equal to IBO Cost? • Is the BV less than IBO cost? © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 19

Tips: Ways to Sell More Products ge a P 5 ü Encourage new IBOs to purchase the optional Product Kit at registration ü Activate new IBOs by helping them place their first order right after registration and their second order shortly after sign up ü Make product the foundation of your business ü Make Grand Openings, Merchandising Clinics, etc. fun, safe, and product focused © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 20

How can you help downline IBOs sell more products? • Discuss within the group • Write two ideas on the whiteboard • Five minutes rd eboa Whit © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 21

Review/ Q&A Step 1: Focus on Volume Review, teach, and encourage: ü Personal Volume ü Retailing Volume ü Customer Volume Rule compliance © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 22

ge a P Which is more profitable? 7 ? ? ? ? © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 23

Which is more profitable? $ $ - $79 2/mo FREE Course: “Secrets of the Sales Plan”. © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 24

Step 2: Focus on Structure ge a P 8 Review structure, teach pass up, and encourage differential. © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 25

ge a P Teach: Pass Up 8 YOU P: 200 PV G: ? ? ? PV A P: 100 PV G: 100 PV P = Personal Volume G = Group Volume All volume less than 25% bonus bracket “passes up” to create Group Volume © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 26

Teach: Pass Up YOU P: 200 PV G: ? ? ? PV 100 PV A P: 100 PV G: 100 PV 3% All volume less than 25% bonus bracket “passes up” to create Group Volume © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 27

Teach: Pass Up YOU P: 200 PV G: 300 PV 100 PV A P: 100 PV G: 100 PV 6% 3% All volume less than 25% bonus bracket “passes up” to create Group Volume © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 28

Teach and Encourage: Differential YOU P: 500 PV / 1500 BV G: 600 PV/ 1800 BV A P: 100 PV / 300 BV G: 100 PV / 300 BV 3% 9% To simplify: BV to PV Ratio is set to 3. 0 What is your Differential Percent? 6% (9% - 3%) How much bonus do you earn? On your Personal Volume: $135 (9% x 1500 BV) FREE Course: “Making Money” On A’s Group Volume: $18 (6% x 300 BV) TOTAL: $153 Differential Percent = Your Bonus Bracket – Bonus Bracket of frontline © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 29

Example: Differential and Structure ? ? ge a P 9 Alternative : Leg 1: 1500 GPV Leg 2: 1000 GPV Leg 3: 600 GPV Leg 4: 300 GPV Leg 5: 300 GPV Leg 6: 150 GPV Leg 7: 150 GPV © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 30

Example: Differential and Structure $ $ + $681/mo. © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 31

Where is most of the monthly income from? A. B. Per. : 200 Retail: 100 300 P C. Per. : 200 Retail: 100 PV 10 e ag 300 Per. : 200 Retail: 100 PV 2500 2200 7500 GPV 2300 GPV GPV 300 PV 7500 GPV rd eboa Whit © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 32

Where is most of the monthly income from? A. B. Per. : 200 Retail: 100 300 Per. : 200 Retail: 100 PV 2500 2200 7500 GPV 2300 GPV GPV Retail Potential: Perf. Bonus: Differential: Leadership: $122 $221 $1680 $0 $2023 P C. Per. : 200 Retail: 100 PV 10 e ag Retail Potential: Perf. Bonus: Differential: Leadership: $122 $221 $678 $339 $1360 300 PV 7500 GPV Retail Potential: Perf. Bonus: Differential: Leadership: © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. $122 $221 $0 $952 $1295 33

Review/ Q&A Step 2: Focus on Structure Review, teach, and encourage: ü Structure ü Pass-up ü Differential © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 34

Step 3: Focus on the Fast Track Incentive Program ge a P 11 Review Fast Track Program qualifiers, teach the available bonuses, and encourage participation. © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 35

Benefits of the Fast Track Incentive Program Amway research shows: − Platinums who earned the $200 Balanced Sponsor Bonus earned 41% more in the year they first became Platinum compared to those who didn’t earn it. For more details: − NEW IBOs who earned the $50 New IBO Incentive renewed at 2 X the • Consult with yourwho upline rate of those did not earn the bonus. • Search “Fast Track” − 79% of IBOs who earned the $200 Balanced Sponsor bonus renewed. • Amway Learning Center − IBOs earning one $50 New IBO Incentive bonus earned almost three times as much as those who didn’t earn the bonus in their first six months in the business. All statistics are from the Amway Performance Drivers Department Calendar Year to Date, September 2012. Numbers are based on a comparison to the same year-to-date period in 2011. © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 36

Teach and Encourage: Fast Track Incentive Program Bonuses • Bonuses available within first six months: − $50 New IBO Incentive Bonus ( up to 3 x) − $100 First Step Bonus − $200 Balanced Sponsor Bonus • Bonus available within first twelve months: − $1, 000 Fast Track Program Plus Bonus • Repeatable bonuses: − $75 Mentor Bonus © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 37

Teach and Encourage: $200 Balanced Sponsor Bonus © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 38

Do you need to maintain “ 50/150” to earn the $200 Balanced Sponsor Bonus? rd eboa Whit © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 39

Teach: Fast Track Incentive Program Tips ü Maintain 150 Personal PV with at least 50 PV from qualified Customer Sales each month. ü Remain CVR compliant in the month the last downline qualifies for the $50 New IBO Incentive. ü Purchase a qualifying product kit. FREE Webinar: ü Be mindful of dates (six months year)Incentive Program” “Fastvs. Track − Example of 6 -months: IBO registers Feb. 13 th. That IBO has until the end of July to earn those bonuses available within the first six months. © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 40

Review/ Q&A Step 3: Focus on the Fast Track Incentive Program Review, teach, and encourage: ü Available bonuses ü How to qualify © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 41

Platinum Considerations ge a P 12 How to maintain a Platinum month, the effects of breaking a leg, and the availability of Growth Incentives © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 42

If my business grows, I’ll make more money… Right? © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 43

3 Ways to Maintain a Platinum Month Most Profitable • Generate Award Volume of at least 7, 500 OR • Generate Award Volume of at least 2, 500 PV and register one group that qualifies at the 25% Performance Bonus Level OR • Register 2 groups that qualify at the 25% Performance Bonus Level © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 44

ge a P 12 What is the Side Volume? A. Per. : 200 Retail: 100 2000 PV B. 300 PV Per. : 200 Retail: 100 300 PV 2000 150 2000 7500 PV PV PV 6500 PV rd eboa Whit © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 45

ge a P 13 Effects of Breaking a Leg ? ? ? © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 46

Effects of Breaking a Leg - $413/mo. No Q 12 Bonus! © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 47

Effects of Breaking a Leg w/Side Volume Develop Leg 2 & 3 Build new Leg 4 +542/mo. © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 48

A Word on Growth Incentives “IBOs also may qualify for Growth Incentives, a collection of discretionary awards separate from the IBO Compensation Plan. ” Key takeaway: Amway. com: Leverage the IBO Compensation Plan for profitability year “Growth Incentive” brochure after year. © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 49

Review/ Q&A Platinum Considerations ü 3 ways to maintain a Platinum month ü Effects of breaking a leg and side-volume ü Availability of Growth Incentives © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 50

Download Today: “Amway Business Modeler” • i. Tunes® • Google Play™ • Amway. com > Business Center > Business Modeler © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 51

Call to Action ü Consult upline about specific strategies to implement ü Enhance your existing coaching with the skills learned today ü Download the Amway Business Modeler ü Model your business first Focus on productivity…not activity. © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing. 52

Questions? #Amway. NPC Thank You for… …Your time, …Your attention, …Your commitment! ~ Amway North America Training & Education © 2013 Amway Corp. All rights reserved. For IBO use only. Not to be used with prospects. Pricing as of March 2013. Use website or catalog for current pricing.