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Americas

Starting a business in El Salvador

Plan Basics

Overview

Purchasing Products
All Amway Business Owners purchase products directly from Amway.

Bonus Payment
Bonuses will be paid directly to all Amway Business Owners (ABO) who have earned the bonus. Bonus payments will be paid by check unless direct deposit is requested. Beginning January 1, 2009, an ABO must generate 150 personal points in a month in order to receive a bonus. This applies to any bonuses (personal, group differential, leadership, etc.). This new requirement is a monthly requirement meaning that an ABO must generate 150 personal points every month that he is receiving a bonus to be eligible to keep it. This requirement has been waived for Foreign ABOs with a Number two business in Latin America. The assumption is that these ABOs are fulfilling requirements in their Home Market.

PV/BV Transfers
PV/BV transfers are not available.

Single Line of Sponsorship
Amway Latin America is integrated by 12 affiliates:
Argentina
Brazil
Colombia
Costa Rica
Chile
El Salvador
Honduras
Guatemala
Mexico
Panama
Uruguay
Venezuela
As of September 2007, Latin America began operating as a Consolidated Line of Sponsorship (consolidated market) where Amway Business Owners (ABOs) are able to personally sponsor from and to any market within the Latin America Region without the need to establish as second business. The consolidation of the Latin American line of sponsorship means very important opportunities for ABOs. Some of the benefits are:
– Cross border sponsoring allows for personal sponsoring in all markets
– ABOs can place orders in any market different from their home country, only to be shipped to local addresses within the affiliate where the order is placed
– Combined volume from all markets allows an ABO to reach the 21% level more quickly
– Regional Business Kit
– Regional SIP Program
– Regional Bonus Statement

Performance Schedule

PV Performance Bonus
10000         21%
7000           18%
4000           15%
1,800           12%
600            9%

Retail Margin
Retail margin or mark up for Amway products averages about 30% but varies with each product. The average retail margin for this market is 30%.

how to start

Business Kit Purchasing
In order to buy a Business Starter Kit and become a new Amway Business Owner (ABO), the prospect must be at least 18 years age and contact an Amway Business Owner for purchase of the Starter Business Kit. The new Amway Business Owner must complete, sign and submit the Registration form (original) by post mail. (He/she may also fax the Registration Form before sending the original so he/she can buy products immediately).

This process can also be completed using the Internet site www.amway.com.sv where the applicant, together with the sponsor, completes the Registration Form. The new Amway Business owner is registered at that moment and he/she can buy products on-line. The Business Starter Kit will be automatically included in the order. The Registration Form must be printed and signed by the applicant and submitted to Amway de El Salvador within the first 90 days.

Cost of Business Kit
$15.00 USD (including VAT)

Sponsoring
In order to register a new Amway Business Owner (ABO), the sponsoring ABO must ensure that all ABOs registered are provided with an official Amway Business Starter Kit (without substitution or alteration of the contents) and the ABO Contracts are completed, signed and submitted to Amway Argentina.

As of January 1, 2009, an ABO is required to attend or complete two training courses – Welcome to Amway and Presenting the Amway Business Opportunity within 30 days from their first sponsorship. If the ABO does not complete these two courses within the required 30 days, future sponsoring will not be allowed. An ABO must also generate 150 personal points within a performance month.

Business/Distributor Types
In addition to the Amway Business Owners, Amway Latin America established two additional alternatives to have access to the Amway Products and Services called Associate and Client.

An Associate is able to buy Products directly from Amway de El Salvador at Distributor cost and resale them. Associates can not sponsor and bonuses are not received.

To become an Associate the person can be register by internet, the 800 number or in the Amway Shop he/she has to fill an application which requires basic information, an associate must be referred by a known ABO otherwise this person must be registered as a client. The cost to become an Associate is of $ 27.00 USD this cost covers a Product Catalog and special communications for a fiscal year (September – August).

A sponsor is required to sign in as an Associate and the person can choose if he/she wants to be contacted by the sponsor. Legal entities can not become Associates.

A Client is able to buy Products directly from Amway de El Salvador at a retail price and can be able to obtain a discount according to the amount purchased. Clients can not sponsor and bonuses are not received.

To become a Client the person can be registered by internet, the 800 number or in the Amway Shop by providing their name, telephone number, e-mail address, name of the ABO who is registering him/she, in case the person has not been refer and does not an Amway Business Owner, Amway will assign one based on a data base of retailers of the affiliate. There is not cost to become a client.

A sponsor is required to be register as a client and the person can choose if he/she wants to be contacted by the sponsor. Legal entities can become clients.

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.

Amway Business Owner Registration Requirements

Please check the following website for visa information:

www.rree.gob.sv/sitio/sitiowebrree.nsf/pages/sservicios_visasextranjeros

Note: a foreigner can perform activities of promoting the Amway business by recruiting ABOs in El Salvador, without need of other requisite than a tourist visa. However, this activity implies that any income derived from commissions paid to the foreigner is taxable in El Salvador. You should consult a Salvadoran attorney or accountant with regards to tax obligations in El Salvador.

Visa Requirements
Please check the following website for visa information:

www.rree.gob.sv/sitio/sitiowebrree.nsf/pages/sservicios_visasextranjeros

You can use your passport number to fill out the Amway application.

Formation and Registration of Your Business
Foreigners that wish to open an Amway business in El Salvador must have passport or “Resident Card” and NIT for purposes of taxes. In case of Salvadoran citizens they must have DUI (Sole Identification Document) and NIT (Tax Identification Number) and also report a local address and telephone number. In addition, they must have a Salvadorian Bank Account in any of the Amway licensed Banks (Citi, Agricola and America Central).

Note: If a foreign national wishes to conduct its business from El Salvador, on a permanent basis, a process of requesting a Resident Permit before the Immigration Direction is required. General information on requirements for this process can be found at the website indicated above.

Amway recommends that you consult qualified professions and pertinent government authorities to prepare required documents.

Required Documents for Registration
Please check following sites to obtain information:

– Resident Card: egov.uscis.gov
– NIT: www.elsalvador.org
– DUI: www.dui.com.sv
– Banco Agrícola Comercial: www.bancoagricola.com
– Citi: www.bancocuscatlan.com/elsalvador/index.html
– Banco de América Central: www.bac.net/elsalvador/esp/banco/index.html

Cost and Bonus Payment
The purchase of the Starter Kit. Check with the affiliate for the actual cost. As with your primary business, your second business must be renewed each year with the affiliate.

Bonuses generated in the business, will be paid by bank deposits into the account of the ABO at any of Amway Certified Banks (Agricola, Citi or Banco de America Central). The ABO should provide a remittance request letter for Amway and an authorization to Amway to deduct a broker’s fee form the total payment. The cost if approximately US$30.00 per operation paid by the ABO. Amway will provide the necessary document to release the remittance.

The requirements for opening a Bank Account are shown as follow:

Non Residents
– Passport
– Local Address and Telephone.

Some Banks might have policies requiring more documents such as NIT for Non Residents. Please consult the local office of your Bank for this requisites.

Residents
– Resident card.
– NIT (Tax Identification Number)
– Utilities Bills or Invoices. (Electricity, Water or Telephone)

Affiliate Staff Contact (names / email / phone)

Xotchil Chicas
Xotchil.Chicas@amway.com

how to order

Ordering

ABOs, Associates and Clients can order Amway products from Amway de El Salvador by:

Order Entry, phone 800-7001
Following the next steps:

– Provide your ABO, Associate or Client Number to place an order.
– Confirm that the code number of the Products is correct when you are ordering; you can verify this number in the price list.
– Have handy the address where you wish Amway de El Salvador to deliver your order. This address has to be within the country of El Salvador.
Hours of Operation: 9:00 am to 7:00 pm. Monday through Friday
9:00 am to 12:00 pm. Saturday

Internet Orders
You can also order products through our web site: www.amway.com.sv

Amway Shops
Alameda Manuel Enrique Araujo,
Calle La Reforma, Centro Comercial Plaza San Benito, Locales 4 -10
San Salvador, El Salvador
Tel. (503) 25251800

Payment Methods

Order Entry and Internet Orders:
– Credit Card (Master, Visa and American Express )
– Deposit in Bank Account
– Debit Card

Amway Shop:
– Credit Card (Master, Visa and American Express)
– Debit Card
– Cash
– Deposit in Bank Account

Returns/Refunds
Business Kit returns will be accepted 90 days from date of purchase (Amway Business Owner only). The new Amway Business Owner has three months (90 days) during which if he wants to resign, he may receive a refund provided that he brings back the Business Kit intact, with the contract and Identification Card. If product or literature is missing when the kit is returned, that amount will be deduced from initially kit payment.

Products may be returned under the Customer Satisfaction Guarantee policy. Amway Business Owners must return the products to the Product Selection Center with proof of purchase (receipt, ticket, invoice). They must also complete a form where information pertaining to the Amway Business Owner is captured as well as the reason for why they are returning the product. Depending on the situation, the Amway Business Owner has the option to receive their money back or product replacement.

how to manage

Access Information

– In person – at the offices through a Customer Service Representative or a Distributor Relations Representative
– By phone – (503) 25251800
– By e-mail: Xotchil.chicas@amway.com

Receive Bonus Payment

Beginning January 1, 2009, an ABO must generate 150 personal points in a month in order to receive a bonus. This applies to any bonuses (personal, group differential, leadership, etc.). This new requirement is a monthly requirement meaning that an ABO must generate 150 personal points every month that he is receiving a bonus to be eligible to keep it.

This requirement has been waived for Foreign ABOs with a Number two business in Latin America. The assumption is that these ABOs are fulfilling requirements in their Home Market.

ABOs, who have earned a bonus, may receive the payment via bank, electronic transfers by registering the bank account.

The ABO must send a data modification informing their bank account number data:
– Bank
– Branch
– Account Type
– Account Number
The bank account could be Santander Río or Standard Bank and the titular account name has to be the Amway Business Owner’s name.

If the ABO does not provide a bank account, a check is generated automatically and submitted by post mail to the ABO’s mailing address.

Also the ABO can choose that all the bonus payments earnings will stay in A/R forward so that amount can be use for future purchases.

Renew

All ABOs need to renew their Contract.

An ABO’s initial contract year terminates on December 31, if it is signed prior to August 31, or on December 31 of the next year if the ABO Contract is signed after August 31. The renewal fee and procedures are published yearly in Amway Publications.

Renewal Methods
– Amway Shops
– Order Entry
– Internet web site: www.amway.com.sv

Payment Methods
– Credit Card
– Bank Transfer
– Cash (Only in Amway Shops)

contact

Amway El Salvador, S.A. de C.V.

Alameda Enrique Araujo, Calle La Reforma
Locales 4 al 10 del Centro Comercial San Benito
San Salvador
El Salvador

Phone: 503-2525 1800
Fax: 503-2525 1819

Public Web Site: www.amway.com.sv (Public & Distributor Website)
Xotchil.chicas@amway.com (Email)

Opened January 1995