THE NEW Founders Achievement Award - Amway · Amway Direct Sellers will qualify for this new...

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THE NEW Founders Achievement Award Rewarding balanced, sustainable businesses

Transcript of THE NEW Founders Achievement Award - Amway · Amway Direct Sellers will qualify for this new...

Page 1: THE NEW Founders Achievement Award - Amway · Amway Direct Sellers will qualify for this new program –not less. What is a balanced and sustainable business to Amway? A balanced,

THE NEW

Founders Achievement AwardRewarding balanced, sustainable businesses

Page 2: THE NEW Founders Achievement Award - Amway · Amway Direct Sellers will qualify for this new program –not less. What is a balanced and sustainable business to Amway? A balanced,

Since our founding in 1959,

Amway has been committed

to enabling success for

our Amway Direct Sellers.

Our founders, Rich DeVos

and Jay Van Andel, started Amway as a way

to help people everywhere start their own

business and achieve their full potential.

The business was built on four Founders

Fundamentals:

We believe that good work deserves

appropriate recognition and financial

reward. This change to FAA will better reward

Amway Direct Sellers for building balanced,

sustainable businesses and developing their

downline leaders.

This fundamental shift in FAA is taking place

as a part of a global change to better align

with the Core Plan. Amway is preserving

full investment in the New FAA Commission

Program, and with this change, commission

payments will be redeployed to leaders with

strong and balanced structures.

COMMITTED TO

ALIGN WITH CORE PLAN

REWARD LEADERS FOR BUSINESS BUILDING EFFORTS

REWARD ACTIVE & DIRECT MARKET INVOLVEMENT

NO TERRITORIAL BORDERS

PROMOTE BUILDING SOLID FOUNDERS PLATINUM TEAMS

THE NEW PROGRAM WAS DESIGNED WITH SIX KEY PRINCIPLES IN MIND:

ENCOURAGE SUSTAINABLE BUSINESS BUILDING

YOUR SUCCESS

FREEDOM FAMILY HOPE REWARD

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THE NEW

FAA COMMISSION PROGRAM AT A GLANCE

Multiplier Table

+Super Teams

Super Teams Commission

Super Teams Commission ($USD), (paid in )*

Monthly Core Plan Commission

How to Qualify

+ +

Average Monthly Core Plan Commission

Multiplier (based on width and depth)

FAA Commission Payment

Min F Plat Teams

1 $0

4 $80,000

7 $180,000

2 $40,000

5 $100,000

8 $220,000

3 $60,000

6 $140,000

... U N L I M I T E D P O T E N T I A L

4

8

10

12

35

27

20

75

60

45

125

105

90

150

300%

250%

200%

500%

450%

400%

700%

650%

600%

750%

Points Multiplier Percentage

DHAC*

*DHAC = Diamond Higher Achievement Commission

At least 4 in-market Founders Platinum

teams

At least 20

points

PERFORMANCE

GROUP DEVELOPMENT

ENHANCED SALES

LEADERSHIP DEVELOPMENT

strengthening the connection between FAA & Core Plan

A Super Team is a Founders Platinum team with 30+ points

This commission rewards Amway Direct Sellers who earn the highest multiplier (750%) and have two or more teams at 30 points

Paid annually for each and every year that you qualify

The better you build, the more you can earn

Super Teams are not capped, allowing for unlimited potential

* FAA Commission will be paid in local currency

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performance years 2018 - 2020.

performance

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FREQUENTLY

ASKEDQuestions

New FAA Commission Program

GENERAL QUESTIONS

Why are we changing the FAA program? And why now?

Over the years, our business has evolved and the environment in

which we operate has changed. As a result, Amway is making

global changes to better align all incentives with the Core Plan

and Amway’s Founders Fundamentals. Amway has taken a fresh

and critical look at the FAA program and is making changes to

ensure that Amway Direct Sellers are being appropriately

rewarded for developing downline leaders and building balanced

and sustainable Amway businesses. We strongly believe that

strengthening the connection between FAA and the Core Plan will

result in more sustainable rewards for today’s leaders and a more

attractive program for the next generation of leaders.

Where can I find the details around the New FAA

Commission Program?

Your local Amway Sales team will be your go-to for all information

and details of the new program. After the official launch on

September 1, 2017, you will also be able to access literature and

educational materials via MyBiz.

How long will the New FAA Commission Program be in

place?

While Amway maintains the right to make appropriate

adjustments as needed, the plan is for the new FAA program to

continue permanently. The three year transition plan will end in

September of 2020.

Is the New FAA Commission Program available for all

markets worldwide?

Yes, the new FAA program continues to be a global opportunity.

What are the advantages of the New FAA Commission

program over the original FAA program? What's in it for

me?

There are a number of benefits to the new FAA program:

• Better compliments the Core Plan by directly connecting your

FAA Commission to Core Plan income.

• Rewards you for all business building activities by ensuring

you are rewarded for building leaders in both width and depth.

Whereas the original FAA program only rewards you up to one

DHAC** in a team, the new FAA program will reward you for

up to 30 points (e.g., 10 DHACs** in a team).

**DHAC = Diamond Higher Achievement Commission

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?

*EHAC = Emerald Higher Achievement Commission **DHAC = Diamond Higher Achievement Commission

• Eliminates territorial borders, allowing for multiple businesses

to have the same earning potential. You will be rewarded for

the true scale of your global business, no matter if that is in one

market, or many.

• The addition of the Super teams Commission rewards truly

exceptional leaders who inspire others to greatness.

Additionally, the amount of Super teams you can earn is not

capped, representing a significant payment opportunity for you

for developing and maintaining Super teams.

• The payment structure in the new FAA program will not produce

significant changes in Commission year-over-year. Your

Commission will more accurately reflect the size of your

business.

The original program is very easy for me to understand. Will the

New FAA Commission Program be as simple?

We understand it may take some time to fully understand the new

plan, but please know Amway is making every effort to ensure that

the new FAA program is as straightforward as possible. Throughout

the process, Amway consulted with Amway Direct Sellers and their

feedback directly influenced the design and simplification of the

new plan. Additionally, appropriate support and education will be

put in place to ensure you have a clear understanding of the

changes.

How can I find out the impact of the New FAA Commission

Program to my FAA Commission and track my progress?

To help you set goals and motivate your downlines, Amway has

designed a new MyBiz feature that will allow you to track your

potential income as determined by the new FAA program. This

feature will be coming soon. Your local Amway Sales team can also

provide guidance with setting goals and planning for the future.

Is the New FAA Commission Program a cost savings tactic?

No, the new FAA program is NOT a cost savings tactic. Amway is

preserving full investment in the New FAA Commission program. To

ensure the success of every Amway Direct Seller, Amway is over-

investing in the program for the next three years to ensure a

smooth transition. During this time, you will receive the better of

either program (new vs. original) for your Commission payments.

Is there training available on the New FAA Commission program?

Beginning September 1, 2017, FAA training will be available via

your in-market Amway Sales Team. Additional educational

materials will be available via MyBiz.

Are there changes I can make to my business to maximize the New

FAA Commission program?

The most effective way to maximize the new program is to grow

your Core Plan income by focusing on building your business in

ways that are rewarded by the Core Plan – a balance of width and

depth. The new FAA program also more directly rewards you for

developing downline leaders. For specifics on how to maximize the

program for your own businesses, contact your local Amway Sales

team.

How will the New FAA Commission Program enhance participation

as compared to the original program?

Because the new program rewards you for development of leaders in

depth in a way that the original FAA does not, we believe that more

Amway Direct Sellers will qualify for this new program – not less.

What is a balanced and sustainable business to Amway?

A balanced, sustainable Amway business is one that meets the

Amway Direct Seller’s expectations for success, demonstrates

sustainable growth and is built with a balance of width and depth.

The width and depth equilibrium is achieved by balancing a focus

on sales to customers with sponsoring others to do the same.

Healthy businesses adhere to Amway’s Rules of Conduct, Founders

Fundamentals and Values.

HOW DOES IT WORK?

What qualifies me to receive a payment from the new FAA

Program?

There are three criteria to qualify for the new FAA Commission. You

must be a DHAC**, have at-least 4 in-market Founders Platinum

teams and at-least 20 FAA points. In addition, as is the case with

the original program, you must be in good standing.

What is Monthly Core Commission?

Monthly Core Commission is made up of Performance Commission

(both Personal and Sales), Enhanced Sales, Group Development

and Leadership (includes Leadership, International Leadership and

Foster Commissions).

Will the 2% Leadership Commission enhancement count?

Yes, the 2% additional amount added to the Core Plan via the

Leadership Commission will be included.

How can an annual program be based on monthly Commissions?

All monthly Core Plan Commissions from #1 and #2 businesses

will be combined together on a monthly basis. This will then be

averaged across the twelve months of the performance year to

calculate an average monthly Core Plan income. The multiplier

calculated at the end of the year will be applied against that

average monthly Core Plan income.

Why does the New FAA require more points to participate than the

Original FAA?

The New FAA points are calculated differently than points in the

Original FAA program…points are now ADDITIVE, meaning they

include more depth than before – a big change over the current

FAA program. Leaders can help earn more points for themselves

and their upline (up to 6 F. Platinums and a total of 30 points in

each team) by stabilizing their own downline leaders and building

sustainable depth.

Are DHACs** and EHACs* also counting as Founders Platinums?

Each leader down a team will count once at the highest qualified

award level. The EHAC or DHAC must also have a Founders

Platinum pin to count. A DHAC** will earn an upline three points in

total.

?

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*EHAC = Emerald Higher Achievement Commission **DHAC = Diamond Higher Achievement

Commission

What is a Founders Platinum team?

Q12 teams do not count for the New FAA Commission. Each team

must now have a Founders Platinum pin within them to count as

both a Founders Platinum team and New FAA Points. An EHAC or

DHAC must also have a Founders Platinum pin to count.

Why is Amway limiting the number of Founders Platinum points

per team to six?

For two reasons. First, the New FAA Commission is meant to

reward our most accomplished leaders for the development of

downline leaders. The requirement to develop leaders beyond

Founders Platinum to maximize points within a team is meant to

encourage leaders to continue to develop their downlines beyond

Founders Platinum. Second, this requirement is meant to guard

against manipulation of volume and Founders Platinum

qualifications.

Why does Amway require #2 businesses to be at the EHAC* level

to count depth?

The New FAA Commission Program is designed to reward active

and direct market involvement – not merely a position in the line of

sponsorship. Founders Platinum is required to earn any points.

With the uncapping of potential from #2 businesses, the EHAC*

requirement was included to ensure that leaders who were directly

involved in developing leaders within a market would be rewarded

for their efforts.

Why aren’t Internationally sponsored Founders Platinum teams

counted toward the width requirement?

The New FAA Commission Program was designed to reward active

and direct market involvement, therefore it only includes #1 and

#2 businesses when measuring width and depth. Internationally

sponsored teams will continue to benefit Amway Direct Sellers

through the Core Plan, and the International Leadership

Commission generated by these teams will contribute to the Core

Plan portion of the new FAA calculation.

Is 150 points the maximum the program has, or can I earn more?

The multiplier schedule is maximized at 12 Founders Platinum

teams and 150 points. The multiplier will continue to apply against

the average monthly Core Plan Income, even as that grows beyond

12 teams or 150 points.

What is a Super team?

A Super team is a qualified Founders Platinum team with 30 points

downline of a leader. In order to enter into the Super teams

schedule and receive the Super teams Commission, a leader must

earn the maximum multiplier (750%) and have a minimum of two

Super teams.

How can there be unlimited potential when there is a maximum

multiplier of 750%?

There is no limit to a leader’s earning potential in the New FAA

program. While the multiplier is limited to 750%, there is no limit

to the amount of monthly core Commission a leader can earn. In

addition, as leaders reach the 750% multiplier, they are eligible for

another unlimited portion of the New FAA program, the Super team

Commission. There is no cap to the number of Super teams that

an Amway Direct Seller can create and get paid for and it is not a

one-time Commission…a leader can get paid each and every year

the team qualifies with 30 FAA points.

Why are points assigned to Founders Platinum, EHAC*, DHAC**

and not other award levels?

The original FAA program rewards leaders for the development of

Founders Platinum, EHAC* and DHAC** teams. The new FAA

program will follow the same general principle.

Why does Amway require 2 Super teams in order to receive Super

team payments?

The minimum threshold of two Super teams ensures that the

leader has demonstrated that they can build their own Super team,

not simply benefit from a Super team built by their downline.

Are Super team payments replacing OTCAs? Why are they not a

more lucrative amount?

Similar to OTCAs, the Super team Commission is intended to

reward our most exemplary and accomplished leaders for their

impressive leadership. However, Super team payments are not a

replacement for OTCAs, but are a reward for building sustainable

teams and can generate income for the upline year after

year. There is no limit to the number of Super teams a leader can

build and no limit to the number of years a leader can earn

payments from those teams. This results in a smoother, more

reliable income stream rather than a one-time payment.

Is there any concept of jumping levels? (vs. jump 2 levels and up

for FAA 40 & up OTCA)

No. However, all qualifications that contribute to your point total

will be subject to the Higher Award Tracking process. Furthermore,

the FAA Commission payment is discretionary, and contingent on a

leader being in good standing.

How can I leverage this program to be an effective growth driver in

my organization?

The New FAA Commission Program is fully aligned with the Core

Plan. Just as the Core Plan rewards you for three behaviors –

growing volume, developing leaders in width and developing

leaders in depth – so does the new FAA program. When an FAA

participant grows the size of their business, via any of these

mechanisms, they have the opportunity to grow their FAA

Commission. This allows the Amway Direct Seller to set

personalized goals that resonate with their definition of success –

and to be rewarded for achieving those goals.

Will Amway still use the original FAA Commission Program points

for pin qualifications?

For the performance year beginning September 2017, yes. Earning

a qualification via current FAA points will still be possible. Amway is

currently considering options regarding an improvement to higher

award qualification, but that would not go into effect until the

performance year beginning September 2018. If any changes are

made to qualification requirements, a separate transition period

will be involved.

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*EHAC = Emerald Higher Achievement Commission **DHAC = Diamond Higher Achievement Commission

Why is Amway using Core Plan Income in calculation

of the Commissions?

Amway believes strongly in the Core Plan – specifically that the

Core Plan embodies the Values and Fundamentals that define the

Amway opportunity. By aligning the New FAA Commission Program

with the Core Plan, Amway is showing how committed we are to

the fundamental premise of our business opportunity – that every

individual has potential, and that within Amway they have the

opportunity to realize that potential.

CURRENCY ISSUES

How is Amway choosing my payment currency?

FAA participants often operate their Amway businesses in more

than one country. When they qualify for FAA, their FAA payment

will be presented in the currency of their primary business. The

primary business is often the first business they have established

within Amway.

When does Amway do the currency conversion of my income?

Part of the new FAA payment is based on the total Monthly Core

Plan Commissions earned by the FAA participant’s primary

business as well as their Amway businesses from countries outside

of their primary business. Their Monthly Core Plan Commissions

will be converted to the currency of their primary business every

month based on the exchange rates used during the monthly

Commission calculation. These monthly numbers will be averaged

in the final FAA payment calculation.

TRANSITION PERIOD

How does the three year transition work?

For the performance year beginning September 2017, and for two

subsequent years after that, Amway will calculate and pay the

better of the original FAA program and the new FAA program, at

which time the original FAA program will phase out.

How will Amway help me through this transition?

Amway is committed to ensuring a smooth transition for all Amway

Direct Sellers. We will provide support and education to ensure that

you are able to set clear goals, maximize the program and motivate

your downlines. Amway will also provide access to important

reference and educational materials through MyBiz and your local

Amway Sales team.

Will Amway continue to have OTCAs with the New FAA Commission

Program?

No, the new FAA program will only contain annual payments.

I'm new to FAA. Do I still get the best payment from the two FAA

programs, or do I only qualify for the New FAA Commission

Program?

All Amway Direct Sellers will receive the better of the two plans

during the transition period, regardless if they are a new or existing

FAA member. The transition period for all Amway Direct Sellers,

both new and existing, will end in 2020 and the New FAA

Commission Program will be the only plan rewarded.

#2 BUSINESSES

Does my #2 business count as a qualified team?

Amway will reward in-market Founders Platinum teams under a #1

or #2 business. There are no points earned for the #2 business

itself. Internationally sponsored teams are excluded.

All monthly core Commission contributes to a participant’s total so

even if a #2 is not contributing teams or points, they can still

contribute to the New FAA Commission. In addition, Leaders that

have built strong sustainable businesses in secondary markets will

no longer have their points from the #2 market capped, meaning

all multiple businesses now have the same earning potential.

How is Amway handling markets that I legally can't have a multiple

business in?

If the local laws and regulations of a market do not allow a non-

citizen to open and operate a business, Amway will not attempt to

circumvent those laws. It is Amway’s desire that an individual be

able to operate a business wherever they choose – however, this is

not the case in all markets.