Best Practices Messages - IBOCity Practices Messages.pdf · people to start their own business purely for tax benefits. The IBO Compensation Plan (Plan) powered by Amway offers a

Best Practices Messages

1. Best Practices - Understanding Taxes Concerning Your Business

One of the criteria for A+ Accreditation with Amway is that all IBOs understand Amway’s

best practices. The following is sent in accordance with Amway’s ACCREDITATION PLUS™ Program.

We can all think of many great reasons for becoming an IBO. There many wonderful

benefits to talk about with prospects who are considering their own business with the

IBO Compensation Plan Powered by Amway. Our Best Practices specify that while we

can share many benefits as motivation for becoming IBOs, we cannot encourage

people to start their own business purely for tax benefits.

The IBO Compensation Plan (Plan) powered by Amway offers a great opportunity to

make money, own a business, meet new people and use and merchandise premium

products.

The Plan is not meant to be a source of tax benefits or relief, and it should not be

confused with unscrupulous tax avoidance promotions. It is a violation of Amway Rules

of Conduct to promote tax benefits to prospects as a principal reason for becoming and

IBO.

While there are provisions in tax laws that assist small business owners, no one should

encourage a prospect to start a business in order to be able to deduct various personal

living and travel expenses from their income. The tax laws are in place to help those

who operate their businesses with the honest objective of earning a profit. With proper

record-keeping, IBOs can deduct most ordinary and necessary expenses incurred in the

operation of their businesses. The IBOAI website contains some resources that IBOs

may find helpful in this regard. We do, though, recommend that in addition to the advice

available from the IBOAI and Joe DePetris and his "Bookkeeping 101", that you contact

a qualified tax advisor for specific guidance about your personal situation.

We know that all of you are following the above practices and we applaud you for

building a profitable and balanced business!

Please feel free to contact us if you have any questions. And in the meantime, keep leading the way—we’re very proud of you and the ways you are building your business.

2. Best Practices - Sharing the Plan



Our Best Practice message this month is regarding sharing "The Plan".

We all know the importance of someone you are sharing the business with to see the

whole picture of what the opportunity offers. It helps the person you are sharing the

business to make an informed decision; and it helps you to determine how to focus your

time and energy.

Best Practices support this by requiring that we share the Amway Business Opportunity

Brochure (ABOB) whenever we also share the IBO Compensation Plan ... powered by

Amway (The Plan). In fact, any time we tell someone that they can make more than the

average monthly income of "active" IBOs reported by Amway, we must disclose the

average. This is to comply with requirement by the FTC for any legitimate and reputable

company.

If you are giving a general overview of how the business works, without sharing the Plan

with numbers, it is not required that you provide the ABOB.

Remember ... showing the Plan ... Following Up ... and Following Through are the life-

blood of this business and necessary for growth. Keep moving forward towards your

goals and dreams!

We are very proud of your efforts in building a balanced and profitable business.


3. Best Practices - the 70 Percent Rule



One of the fundamentals to building a balanced business is adopting a smart approach

to product inventory. For those of you who have an inventory of products, Amway has a

guideline for moving and using products through its 70% rule. This practice, explained in

greater detail in the Amway Rules of Conduct specifies that you must sell or use at least

70% of the products you purchase each month.

For most of us, this rule probably seems unnecessary. But the idea behind the 70% rule

is simple. It's a measure to help keep IBOs from over-stocking inventory or over-

extending themselves financially for volume that would result in a pin qualification.

Obviously none of us would consider over-stocking inventory or over-extending

ourselves to reach a PV goal. We know that the only sustainable growth is with adding

IBOs and building our customer volume.

The 70% rule is also not intended to discourage IBOs from purchasing product ... and it

certainly doesn't mean that we can't purchase a reasonable amount of inventory to have

on hand for customers, personal use or even for IBOs. It is merely a guideline to help

IBOs develop savvy inventory practices to help achieve maximum profitability.

We continue to be exceedingly proud of all of you for building balanced and profitable

businesses!


4. Best Practices - Honoring Line of Sponsorship



For a balanced business to grow and thrive, we should be committed to recruiting IBOs

into this extraordinary Business Opportunity. But Best Practices make it clear that all

IBOs need to honor the line of sponsorship. It is against the Amway Rules of Conduct to

"solicit, interfere, or attempt to induce, suggest, directly or indirectly, another IBO to

request a change to another Sponsor or Line of Sponsorship."

When you encounter IBOs from a different line of sponsorship, it is best to wish them

well in their endeavors to build their businesses, without trying to convince them of how

much better your group would be for them. In some cases, another IBO may approach

you about changing sponsors in the Line of Sponsorship to join your group. In these

situations, it is best to take the information upline to be sure it is handled appropriately.

Remember that protecting the line of sponsorship works both ways - it protects others

and it protects you. And it allows you to focus on building your business and growing

your success in a sustainable way.

We wish you the best in your efforts in building a balanced and profitable business!


5. Best Practices - Building a Web-based Business



This month's Best Practice message subject is in regard to building a web-based

business.

As you build your business, you realize that the web - and in particular the Amway North

America (ANA) Website as well as the IBOAI Website - are great tools for sharing

information and managing your business. Best Practices remind us that, as with all

good things, there are rules and guidelines that need to be followed to promote positive,

value-affirming behaviors and prohibit online activities that can be harmful to the

business.

Amway NA Rules of Conduct spell out appropriate behavior for IBOs using the internet

for business:

� Activities such as spamming (sending out unsolicited emails or texts promoting your

business or making blanket solicitations using social networking tools such as Facebook

or Twitter or YouTube) are prohibited.

� If you are using email to communicate with a person about your business, you must

have a pre-existing personal or professional relationship with that person.

� Conversations about products or the business opportunity on sites such as Facebook

must start with another person asking you a question or commenting about the business

- not with a blanket solicitation you've initiated. These conversations should be kept as

personal messages between the two of you. Closed lists can be made on Facebook for

this purpose.

It is also important to remember that the Rules of Conduct prohibit IBOs from

advertising online or operating unauthorized websites; any website created to represent

your business must be approved by ANA. This is the same requirement as for any other

business materials created to promote your business or products. While there are a few

exceptions for advertising online, IBOs who wish to do so must submit a written

proposal and a copy of the ad to ANA for approval.

These online rules are necessary to protect and promote the person-to-person nature of

this business. Spamming and other unsolicited e-communications are often seen as

unsavory and bothersome by recipients and in some cases may violate the law. When

you know the people you are in contact with and have their permission to contact them,

you are less likely to give a prospect a bad impression of our business opportunity.

Remember, keeping it personal makes business better.

We are very proud of all of you and your continued efforts to build a balanced and

profitable business!


6. Best Practices - Building a Balanced Business



This month's Best Practice message is just a reminder of the importance of making

certain that we are all building balanced businesses with moving product to customers

as well as sponsoring new IBOs.

When promoting the IBO compensation plan ... powered by Amway ... it is important to

be absolutely clear that this is not a wholesale buying club and should not be promoted

as one.

IBO success depends on building a balanced business by registering new IBOs into the

business, marketing our exclusive brands and premier product to customers and also

retaining more IBOs in the business through unwavering support and coaching!

Merchandising our products is a critical and required component to an IBOs business.

For money to be earned in this business ... there needs to be sales of products. Our

Nutrilite, Artistry and home products are known for their innovation and high quality,

making them easy to speak about to customers. You'll find that the retail profit made

from these sales is a very nice addition to your income!

As always ... we recommend that we never prejudge anyone and continue to offer the

business opportunity first to them. If they choose not to join ... then never let a lead

dead-end and offer them our incredible products and make them a customer!

We are so very proud of each and every one of you in your efforts in building a

balanced and profitable business.


7. Best Practices - Building a Successful Business



Building a Successful Business

As a part of the IBOAI's commitment to Accreditation Plus, we continue to send best

practices messages each month to remind everyone of some of the basic best practices

for all of us to keep in mind as we build our businesses.

Building a successful business depends on doing a number of things ... including

planning, organizing, connecting with people and merchandising our fabulous line of

products. The Amway IBO Compensation Plan uses a tiered compensation structure

and this subjects us to certain state and federal regulations ... just as any kind of

business is subject to certain regulations.

Regulators consider selling products to end user customers as one of the critical

attributes in distinguishing businesses as legal & legitimate. In our business, no one

makes money unless products are sold to end user customers. Best Practices outline

key requirements and guidelines to ensure that this is a key component in every IBO

business.

The Customer Volume Requirement (CVR) applies to IBOs who have not yet reached

the Platinum level. To earn a bonus on sales volume by downline IBOs during a given

month (differential payment), these IBOs must have at least 50PV in sales to

customers.

We have exclusive lines of products that are priced competitively, offer great value and

can be easily marketed to customers. And we continue to make it easier to complete

and track our sales. While IBOs are only required to achieve CVR for bonus payments

on downline volume and incentives, we recommend that all IBOs use Customer Sales

Activity (CSA), or Auto-Capture. These are helpful tools for keeping track of customers.

(Sales are considered Auto-Capture if customers purchase on the IBO's PRW or

Amway site on their own, or if you purchase for them using their customer ID numbers.

CSA allows you to report sales.) CSA or Auto-Capture is needed for participation in

company incentives and promotions (e.g., Fast Track Incentive Program rewards and

the Growth Incentives Program). Please note that there are guidelines for what is QCPV

(qualified customer PV) that you will find on the MarkerMan site and Amway site.

When IBOs show the Plan, they always include the importance of marketing products to

customers To present the Plan without mentioning the sale of products to customers is

not acceptable. It is important to clarify that this business is not a wholesale buying club!

We applaud all of you for continuing to build a balanced and profitable business!


8. Best Practices - Amway IBO Compensation Plan



Leading the Way Through the Amway IBO Compensation Plan

There are many different reasons for people to choose this business opportunity. It's

important to remember that we all share a bottom line ... we're in the business to make

money and be profitable!

This Best Practices message is about how to approach others in regards to the income

potential to the Amway IBO Compensation Plan. Money most likely is not their only

goal. Many people choose this business because it involved helping others and

reaching out and connecting to them. It is a business opportunity that can be pursued

with a spouse or other family members and friends. And every IBO may have different

expectations for the amount of money he or she would like to make. For some, it might

be enough to pay for children's educations. For others, it may be to earn enough for a

spouse to quit a job. And for others, it may be economic freedom.

No matter the differences, it is a business. Being profitable is important.

So how do we talk about it with prospects? There is great income potential with this

business, and it's easy to get overly excited in explaining it to others. Truth and

accuracy are of utmost importance whenever we talk to others about the income

potential in our approach to the Amway IBO Compensation Plan. Best Practices ensure

that prospects receive helpful and, in some cases, government required information so

that they understand the effort and potential associated with the business.

When talking about earnings with prospects, we can talk about how much we personally

make in income from the business, or use authorized earnings representations provided

that the required income disclosures are used where applicable. We also can share the

annual numbers for the overall business (such as sales and the amount IBOs

collectively earned in bonuses and incentives). It is important to remember that even

implying that any of us personally earn more than we actually do is not acceptable. We

should certainly not tell someone that he or she can earn large amounts of money just

by working a few hours a week. This business is simple, but not easy. It takes effort to

be profitable - just like in a business venture.

We all know that it takes time and effort to build a successful and profitable business -

it's not something that can be done in a flash with a minimum amount of work. Building

a successful business is challenging, and an achievement to be proud of. It should

always be represented as such. Portraying it as something that doesn't require much

effort does a disservice to prospective IBOs by setting them up with false expectations.

It also minimizes the work of those who have built strong and profitable businesses.

This business, as it is, is a great opportunity. There is never a need to oversell it. Many

of us have accomplished more than we had ever believed possible. We know the same

can be true for current and prospective IBOs.

Keep leading the way in building your balanced business!


9. Best Practices - Exporting



You are already aware that it is a rule violation to export products of any kind offered by

Amway® outside of North America. But perhaps you've wondered why that rule is in

effect.

There are actually many reasons for this: Each country has its own product registration

requirements, product formulas and product label requirements that are specific or

unique to that country. There are also trademark and trade name registrations that are

uniquely applicable to each country. Additionally, each country has its own import and

export laws and other regulations that have to be followed. As an IBO, the Rules of

Conduct require you to comply with all applicable laws, regulations and codes that apply

to the operation of your Independent Business - Rule 4.14.

And there is a specific rule within the Rules of Conduct that expressly governs Exporting

and Importing - Rule 4.18. These export/import laws and rules are so important to the

Corporation's business and to your business, the Corporation, with full support from the

IBOAI®, adopted a rule prohibiting exporting and importing.

That is why IBOs are not permitted to import or export products or services offered

through or by Amway, to or from the United States or its possessions or territories to

any other country. Similarly, IBOs shall not import or export products or services

offered through or by Amway, to or from Canada or the Dominican Republic. It doesn't

matter whether Amway has an affiliate in that country. IBOs are also prohibited from

knowingly selling to others who import or export.

If IBOs import or export or knowingly sell to others who import or export, they can place

Amway and all IBOs in jeopardy, in both countries.

Simply put, product offered by Amway should not cross borders.

This Best Practices Message gives you a few highlights and reminders - but can't cover

everything you need to know and remember. You should review Rule 4.18 for the full

details of the prohibition against exporting and importing.

Please be sure to check upline with any questions you may have. The IBOAI is also available for questions, comments or concerns.

Please feel free to contact us if you have any questions. And in the meantime, keep

leading the way—we’re very proud of you and the ways you are building your business.

10. Best Practices - Fund-Raising



This month's best practices message discusses fund-raising.

We applaud IBOs' efforts to support many worthwhile causes and charities.

However, we want to remind you that all products or services offered by Amway™ may

not be used in conjunction with any type of fund-raising activity.

Fund-raising includes soliciting for the donation of funds or for the purchase of products

or services offered by Amway based on the representation that all, or some, of the

gains, proceeds, donations, bonuses, or profits generated by such sale will benefit a

particular group, organization, or cause.

Donating to a charity or cause using your own personal funds is always acceptable and

is in line with the Amway Rules of Conduct.

Donating products offered by Amway purchased with your own personal funds may also

be acceptable as long as it otherwise complies with the Amway Rules of Conduct.

You can also review Rule 4.21 regarding fund-raising and don’t hesitate to contact your

upline active support team if you have any questions.

We appreciate your continued efforts to build a balanced and profitable business!


11. Best Practices - Intellectual Property



This month's Best Practice is on the issue of Intellectual Property.

Those of you who have attended an event put on by your AP or an Amway event have

seen that video and audio recording are strictly prohibited. You may be uncertain as to

the reasoning. It is actually for your protection … as using music, video, books,

photographs and other items would infringe on someone's copyright or trademark . . .

their intellectual proper (IP). In general, avoid infringing IP is simple; if you didn't create

it, you need to get written permission from the owner to use it and usually pay a fee.

Keeping it simple, IP is a work that is the result of creative effort, a trademark, a design

or an invention. And, just like other types of property, Intellectual Property cannot be

taken or used without the owner's permission.

Musical, literary and artistic works (such as music, books, poems, videos, photographs,

and software) are types of IP protected by copyrights. Logos, product and corporate

trademarks, and slogans are IP that fall under trademark protection. An individual's

"likeness" (name, image, signature, etc.) can even be a special type of IP called a Right

of Publicity.

If you copy, distribute or in any way use materials that are created by someone else,

without proper written permission (such as a license), the owner of the IP may assert

infringement claims against you, our group and/or even Amway. The fines for copyright

infringement can be as much as $150,000 per infringement. And remember, just

because you can find it on the Internet does not mean you can use it.

Based upon the ideas above - let's break it down:

� If you create a video and you decide to add a song - you must get written permission

from the owners of (1) the music, (2) the recording and (3) the performance rights for

use of the song (IP). This is true even if you bought the music from the iTunes® store or

another music source. Purchasing music for your own listening on your own mobile

device is not permission to re-use it in videos. In most cases it is much more than

getting written permission. There is generally a very high fee involved for using music in

any way that is not owned by you.

� When considering the inclusion of photos in a video or placement of photos on a social

media page or public forum - be sure that you have permission from the photographer

to use the photos and from each person appearing in the photos. They have their own

special rights, called rights of publicity and rights of privacy.

� Literary pieces such as books can be invaluable in keeping us motivated. Talking about

a good book is fine - just remember even if you've learned the lessons of the book - limit

your comments to your experience with the book. Always give the title of the book along

with credit to the author, but make sure you do not share the specific contents of the

book. The book is the IP of the author who benefits from the sale of his or her books. It

is ok to encourage others to read the book. It's ok to put in your own words what you

learned from the book, but you should avoid directly quoting from the book. And don't

forget about poems- if they are the creative property of another, permission is needed to

reproduce them.

� While we would like to use the images in the materials created by Amway - the rights to

reproduce the images often do not extend to IBOs and others outside the

corporation. A good example of this is the image of Teresa Palmer or athletes that may

be featured in Amway-produced materials. Publicity rights restrict where, how and who

can use these photographs and their images. For corporate images - simply send your

customers and prospects directly to amway.com.

� While we talked about photo images - it's important to also remember copyrighted

images or trademarks such as those of Partner Stores offered by Amway. While we

appreciate the excitement and desire to shout to all about these partnerships - we do

not have the rights to duplicate the logos. Definitely talk about the associations but refer

to amway.com for the proper usage for Partner Store visuals.

If we had to simplify the above, we'd say - if you didn't create it, you need to get

permission from the owner to use it and most generally pay a fee.

Any materials used with your customers or prospects, at your meetings, on the web or

any of your social media connections are considered business support materials and

your Approved Provider (LOA) submits those to Amway for authorization prior to

use. This applies to any business related materials produced on your behalf by your

AP.

Please note any and all BSMs (including tickets to any meeting) must be submitted to

Amway for authorization prior to use.

Once you decide to start your own Independent Business powered by Amway … you

have now entered into a commercial enterprise. By engaging in this commercial

activity, you take on new responsibilities relative to your use of music and/or videos,

whether on social media or at any type of IBO gathering. We appreciate you and your

creativity in building your business. But just as we support your good ideas and value

your creativity - we must be respectful of the creativity and ownership of the intellectual

property of others. Let's continue to work together in looking for new ways to share your

enthusiasm for your business, the Amway™ Business Opportunity and all of the

products offered by Amway.


12. Best Practices - Nutrilite Products



Nutrilite® is the world's no. 1 selling vitamin and dietary supplements brand* - but what

else are we saying when we talk to others about these great products?

* Source: Euromonitor International Limited, www.euromonitor.com/amway-claims.

Your Upline and Amway Corp love your belief in and enthusiasm for Nutrilite® products

and want to support your marketing efforts. So this month's Best Practices message is

all about helping you with the promotion of Nutrilite® products.

Nutrilite® products are classified as either foods or dietary supplements, which are

treated as a special category of foods by the U.S. Food and Drug Administration (FDA).

This means that Nutrilite® products are subject to both the federal Food, Drug, and

Cosmetic Act, and the underlying FDA regulations that implement and enforce the Act.

It is important to remember and practice the following as you talk about, share, and sell

Nutrilite® products to customers, prospects, and other IBOs:

� As an IBO, you should never attempt to diagnose health complaints or recommend

Nutrilite® products as remedies, cures, or treatments for health conditions. Nutrilite®

products are not drugs and are not intended to treat, cure, or prevent a disease, a

symptom of a disease, or any other medical condition, and they should never be

promoted as such. You should only use terms, statements, and claims that are provided

for use by Amway Corp.

� It is important not to assume your customer needs a certain dietary supplement or other

health and fitness products or programs. Refrain from telling customers what they

need. Provide product information but always allow the customers to select the products

best suited to their personal needs; and always be mindful of what best fits their budget.

� Be sure to call attention to the directions for use and cautions shown on the label when

discussing the products. Also remind your customers that products should only be used

as directed, and there should be compliance with any age restrictions associated with

the product.

� Labels are critical. You must never repackage products offered by Amway Corp to give

as samples. If you'd like to provide samples, only use Amway-packaged samples or

encourage customers to purchase the full-size items backed by the 180-day Customer

Satisfaction Guarantee.*

*Exclusions apply. For complete details check upline and/or visit Amway.com and

search: Satisfaction Guarantee.

� Literature used to promote products should be Amway-generated materials or Amway-

authorized materials and specific to the affiliate market in which they are being used.

We can only make claims for products that have substantiation and support. The

Company has over 900 scientists, engineers, and technical professionals on staff

worldwide who continue to identify and substantiate claims for Nutrilite® products. The

Amway website, product catalogs, product guides,and your Upline are excellent

resources for the claims that can be made about the products. Spoken claims must

follow these same guidelines and must be accurate, substantiated claims as well.

� Before beginning any significant health-related program, any IBOs/customers should

consult with their physician. Discontinuance of product use and communication with a

physician should occur if pain or discomfort occurs as a result of using the product.

While we want everyone to benefit from the products, if a product presents a challenge

to customers, or for any reason causes them to be unhappy with the product, there is

the 100% Customer Satisfaction Guarantee!*

*Exclusions apply. For complete details check upline and/or visit Amway.com and

search: Satisfaction Guarantee.

In a short Best Practice message like this one, we cannot cover everything there is for

you to know about Nutrilite® product promotion and sales or about any of the exclusive

products offered by Amway. Please be sure to review your Business Reference Guide

and all associated product materials and training provided by your Upline and/or Amway

for further information.

Nutrilite® products help people live better lives, and the use and marketing of these

outstanding products as well as all products offered by Amway can help you to do the

same.


13. Best Practices - Music and Video Guidelines



Once you decided to start your own Independent Business you entered into a

commercial enterprise. By engaging in this commercial activity, you take on new

responsibilities relative to your use of music and videos, whether on social media or at

any type of IBO gathering.

Music and videos routinely contain a bundle of exclusive rights - commonly referred to

as "copyright rights" - that may be owned by one or more copyright holders. Copyright

holders own the exclusive rights of reproduction, adaptation, public distribution, public

display, and the digital sound recording transmission right associated with a given

copyright work of authorship.

Copyrighted music may not be used in any way in connection with your business,

unless you first obtain a written license (permission) from all relevant copyright

owners. This is a complicated and potentially expensive process so the easier course

of action is "don't". If you decide you want to use music, please consult with an attorney

because you often need more than one license, particularly if you intend to use

recorded music.

Videos, by their very nature of combining images and sound, often raise complicated

copyright issues as well. A substantial number of videos on the Internet contain a

number of potential copyrighted materials. Relevant copyright owners not only include

the videographer who created the video, but also include the owners of any copyrighted

works within the video, including the script or staging of the action, photos or other

works of art appearing in the video, and the owner of any music and sound recordings

in the video.

The music and entertainment industries are quite strict about protecting copyrighted

works and copyright owners. So, you may not post anything on YouTube® with

copyrighted music and you may not share any videos in any way

(Twitter®/Facebook®/email or at IBO gatherings) that contain copyrighted music or other

copyrighted works.

In addition, many state laws protect the publicity and privacy rights of people who

appear in the videos (sometimes referred to as the right to a person's "name and

likeness"). While you may often hear about these rights in connection with celebrities,

non-celebrities have certain rights as well.

You may hear licensed music at IBO events. The rights for that music to be played at

functions is paid for by the IBOAI®. However, we are NOT permitted to record that

music in any fashion - either by the A/V team hired by the AP or by any member of the

audience.

For further information - go to the IBOAI website and see the guidelines on music and

copyrights.

We applaud you for the responsibility that you continue to show with your commitment

to building a balanced and profitable business.


14. Best Practices - Moving and Using Products for a Balanced Business



Below is this month's Best Practice regarding Moving and Using Products for a

Balanced Business.

Part of building a successful balanced business is adopting a smart approach to

handling an inventory for your business needs. Amway helps IBOs adhere to Best

Practices for moving and using products through its 70% Rule to receive bonuses and

recognition. This practice, as explained in greater detail in the Amway Rules of

Conduct, specifies that you must sell or use at least 70% of the products you purchase

each month in order to be eligible for bonuses or recognition on the volume. For many,

this Rule probably seems unnecessary. But the idea behind the 70% Rule is simple: it's

a measure to help keep IBOs from overstocking inventory and overextending

themselves financially that could result in volume to qualify for bonuses and recognition.

While it's possible that an IBO could think this sounds like a plan for reaping the rewards

of the Business, it ends up hurting sustainability and growth, not to mention personal

finances. After all, the goal of an IBO Business isn't just to reach a certain qualification -

it's to make money and build a profitable, sustainable Business! Maintaining a

reasonable inventory if you choose to have one is an important key to success in both

regards. The 70% Rule is not intended to discourage IBOs from purchasing product -

and it certainly doesn't mean that you can't purchase a reasonable amount of inventory

to have on hand to service your customers or for personal use. It simply is a way to

ensure that products are moving and being used and to help IBOs develop savvy

inventory practices to help achieve maximum profitability.

Remember, you're in a business of your own, but you are never alone. Your upline,

your LOA, the IBOAI and Amway are here to assist you with what you need to help

succeed. In the meantime, keep leading the way - we're proud of you and your

commitment to building your business in a balanced and profitable way.


15. Best Practices - Business Support Materials



Best Practice Message - Business Support Materials (BSM):

With your Amway Independent Business, you’re in a business of your own, but you are

never alone. Your Upline, the IBOAI, and the Corporation are here to assist you with

what you need to help you succeed. For many, especially IBOs whose background is

not in business, an important key to success is the use of professional development

resources. These resources, known as Business Support Materials (BSM), are helpful

tools for providing optional training and motivation to IBOs, an important part of any

sales-driven organization.

Amway Corp, together with IBO leaders, is committed to making sure that every IBO

has access to BSM that reflect the values of Amway and your Upline: Partnership,

Integrity, Personal Worth, Achievement, Personal Responsibility, Free Enterprise. Best

Practices ensure that BSM are offered appropriately to IBOs. Along with Amway, there

are Approved Providers of Business Support Materials. This is to ensure that all BSM

comply with quality assurance standards. It is important to remember that purchasing

BSM or tickets to educational events is always optional and must be positioned as

such. Only registered IBOs may purchase BSM, and no one may state or imply that

buying BSM or attending an event is required to become an IBO or to be successful as

an IBO.

To allow IBOs to work on building successful Businesses with BSM without risk, Amway

Corp requires sellers of BSM to maintain a buy-back policy. Buyers of BSM are entitled

to 180-day buy-back from the seller of BSM if they are not satisfied with their purchase.

Those who buy tickets to functions have a 30-day satisfaction guarantee on the

purchase price of the ticket. There are also restrictions on purchases of BSM in the first

90 days by new IBOs. An IBO who chooses to purchase or sell BSM must ensure that

the quantity and cost of BSM are reasonably related to sales volume and profits of that

IBO. In addition, IBOs in their first 90 days may return all BSM purchased in any form,

including meeting tickets, with proof of purchase, for a full refund of the price paid for

each BSM. It should always be made clear that use of these resources do not

guarantee success. What worked for one person may, or may not, work for

another. No one ever built a successful business without putting in time and effort. For

those who are committed to putting the time and energy in their Amway Independent

Business, BSM can be important resources to help build a balanced, successful

business and attaining goals.

Please feel free to contact us if you have any questions.

Thank you for your commitment to building a balanced and profitable business!


16. Best Practices - Retailing Products



This month’s Best Practices Message is a reminder of the importance of retailing

products as a part of building a balanced business.

As an IBO, when promoting your Amway Independent Business, it is important to be

absolutely clear that the Business is not a wholesale buying club – and it should not be

promoted as one. IBO success depends on building a balanced business of bringing

new people into the business and selling products to customers.

Building a successful business depends on doing several things well – including

planning, organizing, marketing, and connecting with people – as well as selling

products. Regulators consider selling products to end user customers one of the critical

attributes of a legitimate multilevel marketing system. With an Amway Independent

Business, no one makes money unless products are sold to end user customers. Your

nutrition, wellness, beauty, and home products are known for their innovation and high

quality. As your product knowledge increases, you’ll discover people all around you

who want or need what you have to offer through your Business.

It is important to understand how this works. Best Practices outline key requirements

and guidelines to ensure that retailing, selling products to customers, is a key

component of every IBO Business.

The Customer Volume Requirement (CVR) applies to IBOs who have not yet reached

the Platinum level. To earn a bonus on sales volume made by downline IBOs during a

given month, these IBOs must:

Have at least 50 PV in sales to any number of retails customers

OR

Make at least one sale to 10 different retail customers

You have exclusive lines of products that are priced competitively, offer great value, and

can be easily marketed to customers. And Amway continues to make it easier to

complete and track your sales. While IBOs are only required to achieve CVR for bonus

payments on downline volume, we recommend that all IBOs use Customer Sales

Activity (CSA), or Auto-Capture. These are helpful tools for keeping track of customers

(sales are considered Auto-Capture if customers purchase on the Amway or Personal

Retail Websites on their own, or if you purchase for them using their customer ID

numbers.) CSA allows you to report sales. CSA or Auto-Capture is needed for

participation in company incentives and promotions (e.g. Fast Track Incentive Program

rewards and the Growth Incentives Program).

When IBOs share The Plan with customers and prospects, they must always discuss

selling of products. It is not acceptable to present The Plan without mentioning the sale

of products.

Continue to grow your balanced Business by sharing the Amway Independent Business

Opportunity with those you meet. Not only is it rewarding for you, but you can help

others achieve their goals and dreams, as well.



17. Best Practices - Talking Money



This month's Best Practice is about "Talking Money" . . .

IBOs have different reasons for choosing the Amway Independent Business

Opportunity, but it's important to remember that we all share a bottom line - we're in

business to make money. This Best Practices message is intended to help us when

talking to others about the income potential offered by an Amway Independent

Business.

Money may not be your only goal. Many people choose this Business because it

involves helping other people, reaching out and connecting to them. It is a Business

Opportunity that can be pursued with a spouse or other family members and

friends. And every IBO may have different expectations for the amount of money they

would like to make. For some, it might be enough to pay for children's summer

camps. For others, it may be to earn enough for a spouse to quit a job. Or it may be to

have extra spending money each month. And for others it could be to have enough

money to have the lifestyle of their dreams. No matter the differences, ultimately, the

bottom line - making money is important.

So how do we talk about it with prospects? There is great income potential with this

Business, and it can be easy to get overly excited in explaining it to others. Truth and

accuracy are of utmost importance whenever we talk to others about the income

potential of an Amway Independent Business. Best Practices ensure that prospects

receive helpful and, in some cases, legally required information so that they understand

the effort and potential associated with the Business and are not oversold.

When talking about earnings with prospects, we can talk about how much we personally

make in income from our Amway Independent Business, or use authorized earnings

representations provided that the required income disclosures are used where

applicable. We also can share the annual numbers for the overall business (such as

sales and the amount IBOs collectively earned in bonuses and incentives). It is

important to remember that even implying that any of us personally earn more than we

actually do is unacceptable. Telling someone that they can earn large amounts of

money just by working a few hours a week also is not acceptable. When discussing

earnings during the presentation of the Plan, Rule 5.3 requires that we provide a copy of

the Amway Business Opportunity Brochure (ABOB) to the prospect.

We all know that it takes time and effort to build a successful and profitable business -

it's not something that can be done in a flash with a minimum amount of work. Building

a successful business is challenging, and an achievement to be proud of. It should

always be represented as such. Portraying it as something that doesn't require much

effort does a disservice to prospective IBOs by setting them up with false

expectations. It also minimizes the work of those who have built strong businesses and

exposes you, your organization and Amway to potential legal claims that the business is

being misrepresented. The Amway Independent Business Opportunity, as it is, is a

great opportunity. There is never a need to oversell it. Many of us have accomplished

more than we had ever believed possible. We know the same can be true for current

and prospective IBOs.

Please feel free to contact us if you have any questions. We are very proud of your

commitment to building a balanced and profitable business.


18. Best Practices - Embracing Differences



This month’s Best Practice Message is on “Embracing Differences”.

We all know that Amway offers the best Business Opportunity there is – and is open to

anyone in the world. We are attracting new IBOs from diverse backgrounds, many are

younger, and from different races, religions, and nationalities. Our Best Practices make

it clear that acceptance of others is a crucial part of our Business. Regardless of

backgrounds, where we live or who we vote for, this Business can help each of us

achieve our goals and dreams. And just as we are committed to supporting people who

want to operate their own businesses, we’re also committed to acceptance. There’s

room for everyone in this Business – no matter how different we may be in our religious

beliefs, political affiliations, or other viewpoints and opinions. It’s part of what makes our

Business strong and successful.

It’s especially important to be mindful of this during Business Meetings, where there is a

tendency to share personal beliefs with others from the stage. While it is fine to talk

about how important our beliefs are in our own lives and how they’ve helped us build

our Businesses, it is not acceptable to say that other IBOs need to believe the same

things. The one common belief that team members should share in is the power of this

Business and a commitment to building our Businesses in the right way. Our

differences can provide a broad and strong foundation for sharing your Amway

Independent Business Opportunity with those you meet. Not only is it rewarding for

you, but you can help others achieve their goals and dreams, as well.



19. Best Practices - Promoting the Benefit of Becoming an IBO



This month's Best Practice Message for November 2015 is on the topic of Promoting

the Benefit of Becoming an IBO.

We can think of many great reasons for becoming an IBO – and many wonderful

benefits to talk about with prospects who are considering building their own

Independent Business powered by Amway. Our best practices specify that while we

can share many benefits as motivation for becoming IBOs, we cannot encourage

people to start their own Businesses purely for tax benefits.

The Amway IBO Compensation Plan (Plan) offers a great opportunity to make money,

own a business, meet new people, and use and market premier products. The Plan is

not meant to be a source of tax benefits or relief, and it should not be confused with

unscrupulous tax avoidance promotions. It is a violation of Amway Rules of Conduct to

promote tax benefits to prospects as a principal reason for becoming an IBO.

While there are provisions in tax laws that assist small business owners, no one should

encourage a prospect to start an Amway Independent Business in order to be able to

deduct various personal living and travel expenses from their income. The tax laws are

in place to help those who operate their businesses with the honest objective of earning

a profit – not as tax shelters. In those cases, and with proper record-keeping, IBOs can

deduct most ordinary and necessary expenses incurred in the operation of their

businesses. You should consult a qualified tax advisor (preferably a CPA/CGA) for

specific guidance about your personal situation.

The IBOAI website contains some resources that IBOs may find helpful in this

connection. You will find the Bookkeeping 101 booklet, written by CPA, Joe DePetris,

available on the website which can be quite helpful.



20. Best Practices - "Defining Pyramid . . . and Why We're Not One"



Some of us have been on the receiving end of questions about whether our Business is

a pyramid. The answer is an unequivocal NO - pyramid businesses are illegal.

Amway is committed to maintaining the highest standards in business. This month's

Best Practices message is intended to help clear up any misconceptions related to

Amway and pyramid businesses.

There are certain characteristics that mark illegal pyramids:

� Payment of head-hunting fees, i.e. money is earned just for recruiting others and not

from sales volume

� Minimum purchase requirements to participate; and/or

� No sales of legitimate products or services to those outside the organization

The Amway Independent Business Opportunity is distinctly different from an illegal

pyramid. Here are a few of the most important qualities that distinguish us from a

pyramid:

� There are no head-hunting fees involved - ever. No one earns money just for

registering new IBOs

� We also have no minimum purchase requirements to register as an IBO. While there is a registration fee (common for direct-selling companies), the purchase of product is entirely optional, though it is recommended in order to learn about the products

� And perhaps most important, no one earns money in an Amway Independent Business until product is sold

In fact, Amway standards like the Customer Volume Requirement (CVR) are intended to

encourage the sale of product. The CVR, for example, requires that IBOs who haven't

reached the Platinum level must generate at least 50 PV worth of sales to any number

of retails customers or make at least one sale to 10 different retail customers in order to

earn a Performance Bonus on downline volume. The bottom line is that selling products

is important to the success of each IBO Business and the overall Amway Business.



Documents

Best Practices Messages - IBOCity Practices Messages.pdf · people to start their own business purely for tax benefits. The IBO Compensation Plan (Plan) powered by Amway offers a