Amway Compensation Plan – How The Amway Compensation Plan Works

The Amway Compensation Plan – The Good…

If you want to make the most of the Amway opportunity it is vital that you take the time to make sure you understand the compensation plan properly. Once you understand exactly how you will make money, it is much easier to put in place strategies for huge success.

The first bonus about the Amway plan is that it is free to become an Amway Business Owner (ABO). There is no joining fee and no official start-up costs. This makes Amway quite a low risk venture, but it also means that in order to make big profits you are going to have to work quite hard.

Commissions are based mainly on sales. As an ABO you receive 25% of all sales volume over $125. In other words, you must make over $125 every month in order to make any money. If you make less than this you will receive no commissions. Anything you make more than $125 you will get to keep 25% of.

You earn money from the retail mark-up price, monthly performance bonuses for the sales of anybody you personally added into the business, and monthly performance bonuses depending on your productivity.

Whenever you sponsor somebody to join the business, you will be rewarded for the business volume they create.

The Bad…

So you can see that with the Amway Compensation plan you will only make serious money if you not only sell a lot of products but also recruit other people into your business who are able to do the same. Realistically you need to be adding 2-3 people into your business every single day, and to do this you will have to be generating hundreds of leads every single week.

The Ugly…

Traditionally it is common for network marketers to grow their business by appealing to what we call the “warm market”, in other words their family and friends. This usually involves holding sales parties, offering discounts, giving away free samples, handing out business cards, giving presentations, distributing flyers, and often a lot of arm-twisting, even begging. These techniques are fine to get your business up and running, but if this is all you do you are almost certain to fail because nobody realistically knows enough people to be able to add 2-3 of their friends into their business every single day.

In order to make the most of the compensation plan you will need to cast your net much wider. The key to reaching out to more people is by ditching the old warm marketing techniques and instead learning the art of “target marketing”. Target marketing is where you identify a specific group, or groups, of people who would be especially interested in what you have to offer, and use the internet to position yourself so that these people find you. In no time at all hundreds of people will be contacting you, asking you about your business, and begging you to let them come on board with you.

So the most important thing to know about the Amway compensation plan is that in order to make the most of it, it is vital that you learn the art of targeted internet marketing.

To find out more about how targeted internet marketing could explode your business, see the Amway Success Plan