Hello There, Guest!

Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
50 PV rule
#1
Apologies for the length of this. However we need all the facts out there. This just hit my inbox.

50 PV Minimum Requirement for Performance Bonus

Each month Amway pays a performance bonus to IBOs in recognition of their business building efforts and we want to ensure that bonuses go to the people who put in the effort to earn them. Contribution to the business comes in many forms but the most basic is purchasing and selling product. Effective 1st September 2008, performance bonuses will only go to those people who have a personal PV of 50 or more - otherwise the performance bonus will go upline to the next active IBO that has achieved 50PV. Please click here for more information on this requirement effective 1st September 2008.

Ditto Delivery can help ensure you achieve your 50 PV requirement. All new Dittos that are set up and drop between 1 Aug - 31 Oct. 2008 will receive FREE delivery. The reimbursement of the delivery fee will be paid at the time the bonus payments are deposited for the months of August, September, and October. For more ideas on suggested Ditto inclusions click here.

The link goes here.

QUESTIONS RELATING TO 50 PV RULE
Q. What is the 50 PV requirement?
A. The aim is to reward active IBOs with performance bonuses. Hence from Sept 1,
2008 all IBOS must reach a 50 PV personal requirement in order to receive a
performance bonus resultant from the purchases of products obtained by his/her
personal group. IBOs can achieve this by personal purchases or from products
retailed.
Q. Is there a “settling in period” before new IBOs must be achieving 50 PV
minimum.
A. There is a 3 month settling in time for new IBOs. That means that in calendar
month 4 after joining they must have 50PV personal to receive a bonus. There is
one variance, we need to identify those IBOs who join in July/August. For those
IBOs, the 50PV rule will apply in November.
Q “How will this work for those internationally sponsored”. They are not
based in Australia or New Zealand. Their personal PV is always zero?
A. This is all about local PV, if they’re generating a local performance bonus they
need to meet the 50PV minimum. It does not impact International Leadership
Payments.
Q. What about when an IBO goes away for several weeks at a time, have
cancelled their ditto, live in an apartment and cannot give transport
companies access?
A. They will not receive a performance bonus payment from Amway. Their upline
who satisfies the 50 PV criteria, will receive the payment.
Q. An IBO orders through another IBO. Will they get a performance bonus.
A. They will not be paid a performance bonus unless the person placing the order
chooses to pay the person for whom they are ordering from their own bonus. To
pay a performance bonus the IBO needs to be visible to Amway. However, if the
ordering IBO transfers the PV by month end the IBO for whom product is being
ordered will receive the bonus (assuming it equals 50 PV or more).
Q. If an IBO has a manager (a Management Agreement is in place) for his
business, how far does the 50PV rule go?
A. The manager must still comply with the 50 PV Rule for the business to receive
the performance bonus.
Q. Does this rule apply to Diamonds and above?
A. Yes, the 50 PV Rule applies to everyone.
Q. If an IBO just forgets to take care of 50PV due to being away etc. is there any
leniency shown?
A. The system is ‘hard wired’ and will just look to confirm that the criteria has been
reached. A good way to ensure this does not happen is to have at least 50 PV on a
Ditto Order programme.
Q. How will an IBO know if they have not reached the 50 PV minimum and
their bonus has passed upline to the first upline conforming to the 50PV
requirement.
A. Comments will appear on Bonus Statements;
Those IBOs that do not reach the minimum 50PV will show zero differential on
their monthly bonus statement and a note advising that bonus has been passed
upline. The note will read:
“The Performance Bonus generated from your downline business rewards active
IBOs who reach a minimum threshold of 50PV in the month. Since your activity
level indicates that that you have not reached this 50PV minimum the
performance bonus has been passed upline to the next active IBO who has
reached this activity level. By placing monthly orders of at least 50PV on Ditto
Delivery you can ensure the 50PV target is always covered”.
The upline will show a separate differential transaction on their monthly bonus
statement and a note advising the bonus has come from non-compliant downline.
It will read:
“The Performance Bonus Payments(s) for the following IBOs that did not reach
the 50PV requirement have been included in your payment. The payment will be
included in your tax reporting.”
Q. Will any consideration be given to over a three month period if one month is
up and one down although total would come out at 150PV?
A. No. 50 PV must be achieved each and every month to ensure payment of a bonus.
Q. Will returns affect an IBOs 50PV?
A. Negative PV from returns will affect an IBOs 50PV
requirement. Returns will be treated just the same as they always have been.
Q. What is the latest possible date on which I can place an order so that I achieve
at least 50 PV.
A. IBOs have first working day of following month to place orders to achieve 50PV.
Platinums have the second working day to move PV for themselves.
Q. What happens if part of a ditto order is tna. Will the IBO be penalised?
A. There is no penalty for any orders (ditto included) that contain items that
are tna provided they have gone onto backorder. The PV will be allocated, the
item paid for and shipped to the IBO on receipt of the goods.
 Reply
#2
The fact this is not a retail 50PV rule is a bit of a worry.

I am actually quite surprised as I thought the idea was to avoid possible classification as a pyramid. Perhaps we don't have the same FTC rules here.

I am not going to comment but in light of some of the heated discussion regarding Amway and one of its competitors on another thread, some may wish to................ Big Grin
 Reply
#3
Seems to be pretty much what we have in North America except the threshold is 100PV, and the Retail Sales Rule has to be met, per Bridgett's outlining post yesterday. Smile
 Reply
#4
ozibo Wrote:The fact this is not a retail 50PV rule is a bit of a worry.


It looks like a retail rule to me. The products are being purchased for use (a retail sale), not for resale (a wholesale sale).

ozibo Wrote:I am actually quite surprised as I thought the idea was to avoid possible classification as a pyramid. Perhaps we don't have the same FTC rules here.


Why would you think that? Have you fallen for the MLM critic line that too much internal consumption makes something a pyramid, even though the FTC has explictly stated it doesn't?
 Reply
#5
btw, I don't think I like this new rule (not just because I'm abroad!), for much the same reasons outlined on the other thread. It's encouraging people to purchase products in order to receive a bonus. This is legally (and ethically) dangerous.
 Reply
#6
Dang Here I was aftering getting my exact email, hoping to be the first to post, and beaten by a good few minutes by ozibo.

My thoughts: I guess they can't make it explicitly retail because some diamonds would go ballistic as they run a personal consumption model.

I agree IBOFB that this will encourage personal purchases to hit the level.

What gets me is that Amway doesn't explain itself. That bam out of the blue this is the new rule. I would have preffered some history statement like "In the past Amway has required 50PV to obtain a bonus cheque. This has not been inforced, however from 1st September...." Or something similar. Guess that just could be me though.
 Reply
#7
Sorry about that stickshark......I promise to leave the next one to you.

My point is this........Wasn't the issue in the UK that products were not being retailed to non ABO's ?

As for internal consumption making something a pyramid, I thought that was the case. Obviously it isn't according to you and I'll stand corrected.

Wasn't it you who was "getting up" (theres an aussie-ism for ya) the groups that promoted personal consumption and ignored retail sales ? Were you ear marking this as borderline illegal or just dumb business practice ?

I don't think this will change much. Most IBO's earning bonuses would do 50 PV anyway.

It is a little "Mona-Vie-ish though".

Would anyone know why Amway would implement this rule ? I doubt its just a ploy to increase turnover.
 Reply
#8
ozibo Wrote:Sorry about that stickshark......I promise to leave the next one to you.

My point is this........Wasn't the issue in the UK that products were not being retailed to non ABO's ?


Nope. The main issue Amway got hit with was on earnings claims. IBOs were making claims about Amway that wasn't backed up by facts in that market. In one instance an IBO organization's website had for example a guy claiming he was making an "executive level income" from Amway, replacing his income as a surgeon, when the data showed he was making a few hundred pounds a year.

ozibo Wrote:As for internal consumption making something a pyramid, I thought that was the case. Obviously it isn't according to you and I'll stand corrected.


It's a myth perpetuated by the anti-mlm crowd. What matters is motivation for purchase. If getting a bonus is the motivation, then there's a problem.

ozibo Wrote:Wasn't it you who was "getting up" (theres an aussie-ism for ya) the groups that promoted personal consumption and ignored retail sales ? Were you ear marking this as borderline illegal or just dumb business practice ?


Dumb business in my view, but not illegal.

ozibo Wrote:I don't think this will change much. Most IBO's earning bonuses would do 50 PV anyway.

It is a little "Mona-Vie-ish though".

Would anyone know why Amway would implement this rule ? I doubt its just a ploy to increase turnover.


Two possibilities. One is as stickshark said - it's a step towards reintroducing a customer PV rule. The other is it's a reaction to other MLMs, like MonaVie, who have these rules. In my opinion it puts them at legal risk, but there's little doubt it also helps volume and profitability.
 Reply
#9
Stickshark said:
Quote:I guess they can't make it explicitly retail because some diamonds would go ballistic as they run a personal consumption model.
IBOFB said:
Quote:Have you fallen for the MLM critic line that too much internal consumption makes something a pyramid, even though the FTC has explictly stated it doesn't?

Something may be technically legal but as you note, dumb business practice. And given that the FTC in the US is an administrative law body, with management appointed by elected politicians, it wouldn't take much at all to suddenly have that changed and the ground shifted under your feet. In the US, the "Left" has strongly criticised Alticor ownership (not the company itself) for donations to conservative political causes, and given the intense and bitter flavour in American politics these days, it is totally conceivable that with a possible Democratic president, House and Senate, there will be "payback" attempted in whatever ways they can achieve it.

I reached the conclusion very much on my own that a largely self-consumption model is both foolish and dangerous, and is an underlying reason why SOME Diamonds do make an overly-significant part of their income from their tool business, relatively speaking. A year ago in May Alticor promised a world-wide review of business practices, and looking at markets which aren't performing well -- such as Australia -- it looks like they are implementing changes which will leverge best practice toward all IBOs having personal profit centres that include a "retail" client base, ie. Customers buying for personal consumption at whatever price, vs. a self-consumption model.
 Reply
#10
I find it ironic that Ditto is promoted as a way to ensure that you reach the 50pv for the bonus. (just for you IBOFB, since our last debate Wink )

I also think that this is actually much closer to IBOFBs worry of being close to being almost considered illegal. This is because of the motivation part as IBOFB said. MV promotes the Autoship as a way to ensure you are eligible for your bonuses by having it automatically ship your product (that you have already chosen to purchase) during the correct weeks, so you don't accidentally go in-active by ordering in the wrong week (sorry if that is confusing, MV works in 4 week cycles and pays bonuses weekly, not monthly). Amway on the other hand is promoting the Ditto as a way to ensure you do the 50pv, which is fine, but then goes even further to suggest items to purchase to meet this 50PV. Now the motivation for purchase is clearly to get your bonus, not because of the product itself. This is similiar, if not the very same thing as Q* suggesting "Bracket Busters", which are products with the highest PV for the dollar. These items are being promoted solely for the motivation of reaching a new bonus.

Personally I don't have a problem with either situation because I feel the individual still has the personal responsibility to not order anything they don't need, and neither company is refusing bonuses for not using Ditto or Autoship.
 Reply

 
Forum Jump:


Users browsing this thread: 1 Guest(s)