Amway/Quixtar


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They are a classic Stairstep Breakaway plan. You build up a certain amount of volume in the people you personally recruit and each leg starts accumulating volume – which determines your increasing commission levels. If they get to a certain level, they break away and you get an override (smaller) on everything in their group… but it might cause you to drop down in terms of your rank. Its messy to explain, and even messier to maximize because its competitive early – you’d rather sponsor people yourself – and then with the breakaway there becomes a point you don’t want to help people anymore. And people build very wide, because the legs will ultimately break away if you’re having success.

Here’s some basics (from http://www.amquix.info/amway_basics.html)
The number of PV points one has, determines the bonus percentage to be paid. This percentage can be anywhere from 3% to 25% of the BV (Business Volume) points. (This is based on the PV of YOU and anyone you personally sponsor, and they sponsor… etc)

The number of BV points determines how much commission is paid for a certain bonus level.

Commission paid = (PV percentage) x (number of BV points) – (Downline commissions)

(Downline commissions) = (PV percentage downline) x (number of BV pointsdownline)

Typically, Amway core product have more favorable BVand PV per sales dollar since the Amway products do not carry the sales and marketing costs of nationally advertised brand name articles. Brand name articles generally carry less favorable BV/PV/$ ratios. Since Quixtar can not obtain the brand name articles cheaper than the Wal-Marts and Costcos, they must offer lower total pay outs on these products to have any hope of selling them at a competitive price.

The ranks kick in around 7500 PV:

As one expands up to 7500 points and is able to maintain this level for at least 6 months in a year they become a “direct distributor” or otherwise known as a platinum distributor and qualify for the largest bonus percentage of 25%. If one maintains 7500 PV for 12 months in a row then they become a Q12 Platinum direct distributor and earn a bonus of $10,000 for each year they qualify.

A 7,500 PV distributor with 74 personally sponsored 100PV distributors would have gross bonuses of $3,750. His downline is entitled to 74 x $6 = $444 in bonuses, so his net bonus is $3,306.

A 7,600PV distributor with just one personally sponsored leg of 75 distributors doing 7500 PV would net just $50 in bonuses since he has no other width, with which to leverage his 25% bonus percentage.

Once you help others to be come direct distributors then their volume splits off from yours and you will be entitled to a 4% residual from their business, provided they qualify for direct and you have at least 7500PV of volume in other legs in your own business, or you have two or more qualifying legs.

The ranks get pretty crazy:

http://www.amquix.info/quixtar_pin_awards.html

And here’s a discussion of the typical Team Strategy:

http://www.amquix.info/Amway_Real_plan.htm

Here is a simple diagram

IMG_3122