the new founders achievement award - amway · amway direct sellers will qualify for this new...
TRANSCRIPT
THE NEW
Founders Achievement AwardRewarding balanced, sustainable businesses
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
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
performance years 2018 - 2020.
performance
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.