United States

UNITED STATES

UNITED STATES

COMPANY DETAILS

Amway U.S.

7575 Fulton Street East
Ada Michigan 49355-0001
USA

Phone: 1-800-253-6500 - Customer Service

www.amway.com (Public Website)

customer.service@amway.com (Customer Service Email)

Opened November 1959
Territories: American Samoa, Anguilla, Antigua, Bahama, Barbados, Barbuda, Bermuda, Bonaire, British Virgin Islands, Caicos, Carolina Islands, Curacao, Dominica, Grenada, Guam, Jamaica, Jost Van Dyke, Leeward Islands, Lesser Antilles, Marshall Islands, Micronesia, Montserrat, Netherlands Special Municipalities, Nevis, Northern Mariana Islands, Peter Island, Puerto Rico, Saba, St. Barthelemy, St. Croix, St. John, St. Kitts, St. Thomas, The Grenadines, Tobago, Trinidad, Turks, U.S. Virgin Islands, Wake Island, Water Island, West Indies, Windward Islands

Plan Basics

Overview

Purchasing Products
All Independent Business Owners purchase products directly through the Amway website.

Bonus Payment
Bonus payments will be paid by one of these options:
- check through the mail to address on file with Amway
- direct deposit to a local bank account

PV/BV Transfers
PV/BV transfers are available:
- On-line www.amway.com in the Office section of the site
- Call Customer Service 1-800-253-6500 Monday through Friday 8:00 a.m. until 12:00 Midnight ET Saturday 8:30am - 5:00 pm ET

Single Line Of Sponsorship
The United States operates as a single line of sponsorship with Canada, Haiti, and the Dominican Republic. International sponsoring between the four countries is not allowed. Business volume generated in all four countries will be consolidated for qualification and bonus purposes.

Performance Schedule

PV Performance Bonus
7500             25%
6000             23%
4000             21%
2500             18%
1500             15%
1000             12%
600                9%
300                6%
100                3%

PV/BV Ratio
The average PV/BV ratio for Amway products for year 2010/2011 is 2.84.

Retail Margin
Retail markup ranges from 15%-35%, depending upon the product being sold. This is based on a Retail margin calculated as a discount from Retail price - [(Retail Price - IBO Cost)/Retail Price).]

IBO Registration Options

On-line
Register on-line at the Amway site www.amway.com.

The Registration Agreement,and the Amway Business Opportunity Brochure can be found and printed on www.amway.com.

You can also register by calling:
- Amway Customer Service
Phone: 1-800-253-6500
Hours: M-F 8:00AM - 12:00 Midnight ET; Sat 8:30 AM - 5:00 PM ET.
(Note that you will need to follow-up with a signed Registration Agreement to finalize the Registration process).

Cost of IBO Welcome Kit (40122)

Registration Fees:
- Amway Service and Support
$50.00
- IBOAI Board Support
$12.00 *
- Product Kit
$83.99 Delivery Charges $13.75 **
Approximate Total
$159.74 (plus applicable sales tax)
* May be reimbursed, but must be included with initial payment.
**Optional, but recommended.

Business Type
The business model used in the U.S.:

I = Independent Business Owner - Independent Business Owners build businesses that allow them to earn income based on the orders made from Amway under their IBO number. Independent Business Owners also can take advantage of special business services online, where they can access detailed volume inquiries showing the invoices that make up total sales, organizational structure, address and email, personal profiles and numerous view options for efficient organizational information. Some Independent Business Owners qualify to access Business Profile reports that provide detailed and trending information about their businesses, such as product line movement and sponsoring activity. To launch a business powered by Amway, individuals must register with an existing Independent Business Owner.

C = Customers - Customers pay no fee to shop from a large selection of high-quality products and learn more about what they need through expert advice on health, personal care, home maintenance and more. Products are shipped directly to their homes and are covered by a Customer Satisfaction Guarantee. All Customers must designate a referring Independent Business Owner before making purchases; if they do not know one, they will be referred by Amway to an Independent Business Owner in their area.

Establish a Second Business

International Sponsoring
International sponsoring is always an option and an excellent means of expanding your business while avoiding many of the costs and complexities associated with establishing a second business. Please note: For those markets where foreigners are able to establish a second business, they must be the international sponsor of their second business in another country.

As complex business and legal issues are involved, Independent Business Owners should always contact the affiliate and obtain the advice of an immigration and tax attorney for advice on specific circumstances before attempting to enter the United States or establish a second business.

All non-immigrants, unless otherwise authorized by the United States Immigration and Naturalization Office, will not be allowed to work in the United States unless exempt from visa requirements (Visa Waiver Pilot Program). Every foreign distributor seeking entry for temporary stay in the United States must first obtain the appropriate non-immigrant visa. Working without proper authorization is a violation of the non-immigrant's visa status and may subject the non-immigrant to deportation and other penalties under the law.

Business in the United States is regulated by federal, state, and local municipal government authorities. Each state has different regulations on business entities, registration, licensing, etc. There are several business options available for establishing a second business, each with its own legal requirements. The decision of which option an Independent Business Owner chooses would be driven by United States income tax issues and the individual’s plans for the business and its development.

Note: Since the United States and Canada fall under the North American Independent Business Ownership Plan, Canadian Independent Business Owners are not permitted to have a second business in the United States. Furthermore, Canadian Independent Business Owners must obtain all their AMWAY® Products, literature and sales aids from Amway Canada Limited. No United States items can be imported into Canada for use in conducting the business or for resale to customers.

Visa Requirements
If non-resident is not traveling to the United States:
No visa requirements

If non-resident is traveling to the United States:
- Visa must allow you to operate a Amway business
- Student visas are not eligible
- Unless exempt from visa requirements, every foreign Independent Business Owner seeking entry for temporary stay in the United States must first obtain the appropriate non-immigrant visa
- Visa applications are generally available from the United States Consulate or Embassy office in the applicant’s home or resident country
- The applicant must present a valid passport and other required documents, depending on the type of visa requested

Click the link below to display additional details on how to start a multiple business in this market.

Market Framework Requirements

Ordering

- Web site:
www.amway.com

- Customer Service: 1-800-253-6500
Hours: M-F 8:00 AM - 12:00 Midnight ET; Sat. 8:30 AM - 5:00 PM ET.
Fax: 1-800-762-6308

- Via your authorized upline

- Mail: (use an SA-2 Order Form)
Amway Customer Service 58C-2A
7575 Fulton St. East
Ada, MI 49355-0001

Payment Methods

- Credit Card (MasterCard/VISA/Discover/American Express/PayPal(U.S. & Canada)/BillMeLater (U.S. only).

Returns/Refunds

Registration Pack
Reasonable period of time for the refund/return of the Welcome Kit if the Independent Business Owner is not satisfied.

Products
Utilize the prepaid return form received with your order or access the return label at amway.com. Retain a copy for your records. Return the merchandise to appropriate address. Do not return the merchandise to the Service Center. You will receive your refund by the original method of payment.

Access Information

- On-line at www.amway.com
- Views: Independent Business Owner (password required),customer and Visitor
- U.S. Business Information Services (BIS) –
- E-mail: customer.service@amway.com

Receive Bonus Payment
Most Independent Business Owners receive payment of bonus directly from Amway. The bonus will be paid by a check sent in the mail to the address on file with Amway unless a direct bank deposit is established.

Customer Volume Rule
The Customer Volume Rule (CVR) states that in order to obtain the right to earn a Performance Bonus on downline volume an IBO must: (a) make not less than one sale to each of 10 different retail customers;or (b) have at least 50 PV of sales to any number of retail customers.

IBOs who fail to meet at least one of the CVR requirements listed above will not receive his/her Performance Bonus differential payment (if a differential was earned). Instead, the Performance Bonus differential payment will be included in the first upline Platinum bonus payment.

The non-compliant IBO will be advised of his/her bonus roll-up through his/her bonus statement. The qualified upline Platinum will be advised of the differential payment included in his/her bonus payment. The Platinum is requested to determine if the non-compliant IBO is entitled to receive such bonus under the Independent Business Ownership Plan and Rules of Conduct.

For Direct Bank Account Deposits:
Independent Business Owners must complete a bank authorization form (SA-2263) and supply Amway with their banking information
The SA-2263 is available at www.amway.com
Direct deposits are available at any North American financial institutions with checking, savings, money market or against any other account that the financial institution will allow transactions

Non Resident Information:
When receiving a bonus payment in the United States, a W8-BEN form must be filed with Amway. The W8-BEN form is a tax form that allows a foreign person to be exempt from tax withholdings in the United States as the income from their business activities as they are considered not effectively connected with the conducting business activities within the United States. Criteria for completing the W8-BEN:

Limited time is spent in the United States (180 days or less annually)
Not a United States citizen or resident alien
Business is not effectively connected to a United States business
Business activities are occurring outside of the United States

Complete the following steps to obtain a W8-BEN form:
Go to www.irs.gov site and download a W8-BEN tax form, provided you are eligible to submit this form
Complete the form and mail it to:
Amway
7575 Fulton St. East, Ada, MI 49355-0001

Renew
Please note: Renewal is only necessary in one market for Canada/United States/Dominican Republic

If first year, the renewal amount is prorated for IBOs who entered the business in June or later.

Fiscal Year 2013 Amway Business Services and Support Fee (now includes IBOBA Insurance). IBOAI Total IBO fee

- Registration or Renewal $50.00 - Includes $5.00 Insurance $12.00 $62.00
- Prorated fee (IBOs registered in June 2012) $45.00 $12.00 $57.00
- Prorated fee (IBOs registered in July 2012) $40.00 $12.00 $52.00
- IBOs registered August 2010 or later N/A N/A No renewal necessary.

Renewal Methods:
- Online: www.amway.com
- Telephone: (800-253-6500)
- Automatic Renewal:
All IBOs on Auto Renew and all Silver Producers and above will be automatically renewed mid-October. Notification will be sent via email or letter to confirm intent to continue this status.

Payment Methods:
- Credit Card (Visa, Discover, American Express, MasterCard) when renewing online or by phone