amway business plan 2021 ppt

Amway Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their Amway companies.

If you’re unfamiliar with creating an Amway business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a Amway business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your Amway business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start an Amway business or grow your existing Amway network, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your Amway business to improve your chances of success. Your Amway business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Amway Businesses

With regard to funding, the main sources of funding for an Amway business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for Amway companies.

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How to write a business plan for an amway business.

If you want to start an Amway business or expand your current Amway business, you need a business plan. The guide below details the necessary information for how to write each essential component of your Amway business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of Amway business you are running and the status. For example, are you a startup, do you have an Amway business that you would like to grow, or are you operating Amway businesses in more than one state?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the Amway industry.
• Discuss the type of Amway business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of Amway business you are operating.

For example, you might specialize in one of the following types of Amway businesses:

• Retail Sales Amway Business: In this type of Amway business, you will concentrate on retail sales to customers within your developing network.
• Leadership Team Development Business: If you are concentrating on developing leaders within Amway networks, your concentration will be on conferences, events, training materials and other forms of leadership training and communication.
• High Volume Amway Business: This type of Amway business is focused on high-volume network customers who buy in bulk in order to distribute to Amway business owners who have a lower-level volume of sales.
• Online Amway Business: Offering select Amway items that are available in an online-only format, this type of Amway Business has online customers and network growth via digital sales exclusively.

In addition to explaining the type of Amway business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, the amount of revenue during the past six months, opening a second Amway network, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the Amway industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the Amway industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your Amway business plan:

• How big is the Amway industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your Amway business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your Amway business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, families, corporations, medical distributors, and civic organizations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of Amway business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regard to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other Amway businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes warehouse store chains, grocery stores, mail-order companies, and wholesalers. You need to mention such competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of Amway business are they?
• What is their pricing (premium, low, etc.)?
• What sets their business apart from others?
• What are their weaknesses?

With regard to the last two questions, think about your answers from the customers’ perspective. And, don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide options for volume discounts or special deliveries?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a Amway business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of Amway company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide Amway products with a 2-day delivery service for senior orders?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your Amway company. Document where your company is situated and mention how the site will impact your success. For example, is your Amway business located in a business district, a home office, or is it purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your Amway marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute direct mail pieces to your target audience
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) with target keywords on your website

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your Amway business, including answering calls, taking orders, planning and scheduling Amway deliveries, paying invoices, contacting customers, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to reach a high-level in the network , or when you hope to reach $X in revenue. It could also be when you expect to expand your Amway business to include additional Amway networks.

Management Team

To demonstrate your Amway business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing Amway businesses. If so, highlight this experience and expertise. But, also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing an Amway business or successfully running an Amway distributorship.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 25 online customers per day, and/or offer special Amway volume sales with an online order? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your Amway business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit, but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a Amway business:

• Cost of inventory and related packaging
• Cost of furnishings or accessories
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, office supplies and equipment

Attach your full financial projections in the appendix of your plan, along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of friends and associates who are already lined up to buy Amway from your business.

Writing a business plan for your Amway business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the Amway industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful Amway business.

Amway Business Plan FAQs

What is the easiest way to complete my amway business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your Amway business plan.

Where Can I Download an Amway Business Plan PDF?

You can download our amway business plan PDF here. This is a business plan template you can use in PDF format.

How Do You Start an Amway Business?

Starting an Amway business is easy with these 14 steps:

• Choose the Name for Your Amway Business
• Create Your Amway Business Plan
• Choose the Legal Structure for Your Amway Business
• Secure Startup Funding for Your Amway Business (If Needed)
• Secure a Location for Your Business
• Register Your Amway Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Amway Business
• Buy or Lease the Right Amway Business Equipment
• Develop Your Amway Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Amway Business
• Open for Business

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Home » Sample Business Plans » Wholesale & Retail

How to Write an Amway Business Plan [Sample Template]

Are you about starting an Amway company? If YES, here is a detailed sample Amway business plan template & FREE feasibility report. Amway over the years have grown to become one of the world’s biggest direct selling companies by providing any willing entrepreneur with the platform to have a business of their own.

Known as a front – runner in the united states multilevel marketing (MLM) industry, Amway Corporation manufactures and sells its own products as well as brand name products from other companies through a network of three million independent distributors worldwide.

But unlike all other MLM firms, Amway provides a broad selection of items, from cleaning products, cosmetics, vitamins to travel services, discount car purchases, and catalog merchandise. The company’s manufacturing facilities include a 3.5-million-square-foot production plant in Ada, Michigan, as well as plants in California, South Korea, and China.

Meanwhile, Amway products are delivered to distributors in the United States and the Caribbean region through 12 Amway Service Centers.

A Sample Amway Business Plan Template

1. industry overview.

Before going further, it’s pertinent you first understand about multi-level marketing. The Multi-level marketing scheme is a model that can be used to sell goods along with the services of the company with the help of promoters and partners of the company. The total earnings which are collected from the entire sale are distributed amongst the key players. So, in the process, the seller is not the only owner of the profit accumulated from the sale.

There is also an involvement of the step where the associates will have to get paid with the help of a proper multi-level system, and there are commissions provided to these associates and promoters as well. Multi-level marketing, popularly termed as Network or Referral Marketing, has always been in the news due to its seemingly contentious scheme of marketing.

Amway Business Owner (ABO) plays a major role in channelizing the business at a different level. ABOs let the Amway products reach the customers. With the Amway Business model, the associates will be able to sell the products of the company directly and also they can make sure that they help in the promotion of the products as well. This will create different levels of people working towards one common goal.

Note that the functioning of the Amway Business Model is based upon the performance of ABOs (Amway Business Owners). So, for evaluating their performance, Amway has a term known as Product Value, i.e. PV and Group Product Value, i.e. GPV. PV is actually the MRP of the product, and commissions of ABOs are decided as per the PV of that product.

Howbeit, in the hierarchy, the top-level ABO will get the product from the company at a discounted price based upon their commission, so he or she can sell that to others by that retail margin. In addition, ABOs get the bonuses as per their performances, plus growth incentives are offered to them, so they stay motivated in making the chain to channelize the multi-level marketing program of the company.

The business model of Amway is not really that difficult to understand. There are certain roles that ABOs will be playing. They can either act as the distributor of the company, or they will be playing the role of the recruits who are recruited by the distributor.

You will also be able to easily recruit the people in order to do the job for you in the best way. So, it seems quite obvious that the Amway Business model is one of the best models from the other models of businesses.

2. Executive Summary

Amway is an American company which deals in health, beauty, and home care commodities. At Amway Chicago, which is literally an Amway product store in the heart of Chicago, we will still offer a complete line of Amway products.

Our product prices will be quite stable since we will be buying direct from Amway Corporation. Another beneficial features of this relationship which is of significant value to us is the willingness of Amway Corporation to allow our store in Chicago to place orders as small as $160. The Amway Model is acutely infiltrated into the market, that is what makes it unlike the others and appears as a sham to many.

This is because the networking needs to keep on increasing for better results – more and more people are to be made to join hands and more and more people are to be talked to. At Amway Chicago, we have made plans and drafted result oriented strategies to be able to attract consumers who will in turn become distributors

Amway Chicago, just like Amway Corporation, will offer an efficient and effective distribution model where the products are purchased direct from the Corporation ensuring the highest quality and low prices. They are then sold direct to the consumer.

MLM businesses are often confused with pyramid schemes which are illegal in the U.S. Pyramid schemes are business forms that offer compensation specifically for the recruitment of new sellers. People are promised economic rewards for the more people they recruit, independent of what these people sell.

Herein lies the crucial distinction that regulatory authorities analyze when determining if a business is a pyramid scheme: the way compensation is rewarded. If it is based on recruitment, it is presumed illegal. At Amway Chicago, we will only compensate distributors for sales, an effective and efficient sales and distribution system.

Amway Chicago is an exciting new business which will leverage individuals’ needs for good and quality products and the ability to make money while sharing this need with friends and colleagues. By carefully using the efficient multi-level marketing business model, we will quickly generate sustainable revenue.

Sales forecasts indicate that sales for year two and three respectively will be $1,200,000 and $2,340,000. Net profit for the same years will reach 6.19 percent and 9.81 percent.

3. Our Products and Services

Amway Corporation is known to manufacture and sell a wide variety of products that are of top-notch quality which helps the company in making good money. At Amway Chicago, we will still offer a complete line of Amway products to the people of Chicago. These products include;

• Household Cleaners
• Original multi-purpose cleaning product LOC
• SA8 laundry detergent
• Dish Drops dish-washing liquid
• Health and Beauty
• Body Series
• Atmosphere and iCook as well as XL and XS Energy drinks

4. Our Mission and Vision Statement

• Our vision at Amway Chicago is to grow an organization that compensates individuals for sales made by other people that they recruit, while also satisfying the need for Amway products all over Chicago.
• At Amway Chicago, our mission is to build of a environmentally friendly distribution company that uses grassroots and network marketing techniques to sell the product and make a meaningful contribution to the environment. Earthly Clean exists to support its members and to support the environment.

Our Business Structure

In Amway business functioning, Amway Business Owners have the right to sell the products at different levels. The hierarchy is like: Amway – ABO1 –  ABO2 – ABO3 – Customer. ABO gives a fix commission to ABOs, plus income of 1st ABO added when he or she adds the second ABO.

This hierarchy continues, and in some way, the commission gets added in the account of every ABO. We at Amway Chicago, with our salespeople who are a part of the company, will be working down the entire hierarchy. We will be selling all the products from the list and to the distributors that are working in the retail markets. We plan to do this with the help of some great promotional marketing options and schemes.

Our distributors who will be entrusted with all sales methods will also get to recruit some other new dispensers that they want around the entire hierarchy which can be further helped when it comes to the expansion of the network in the best way. We at Amway Chicago also plan to recruit employees to help in the running of our open store.

Leveraging an effective interview process designed to staff our store with highly qualified people for each position, we will also create a path to let them join the network. Background checks will be utilized for designated positions. Recruiting efforts will always center on referrals. These roles include:

Store Operator

Information officer

• Department managers

Store manager

5. Job Roles and Responsibilities

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counselling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creating, communicating, and implementing the store’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall store’s strategy.
• Tasked with fixing prices and signing business deals
• Tasked with providing direction for the business
• Tasked with signing checks and documents on behalf of the Amway Chicago

Financial Officer

• Tasked with preparing financial reports, budgets, and financial statements for the store
• Provides managements with financial analyses, development budgets, and accounting reports
• Tasked with financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Tasked with developing and managing financial systems and policies
• Tasked with administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the store
• Serves as internal auditor for the store
• Provide technological guidance within the store.
• Supervise information system and communications network.
• Develop and implement a customer service platform to serve the store in every aspect.
• Design, establish, and maintain a network infrastructure for local and wide area connectivity and remote access.
• Consult with administration, department managers, and manufacturing representatives to exchange information, present new approaches, and to discuss equipment/system changes.
• Oversee Internet and computer operations.
• Assess and anticipate technology projects and recommend appropriate action and resources.
• Establish and direct the strategic and tactical goals, policies, and procedures for the information technology department.
• Propose hardware/software solutions to accomplish Amway Chicago’s business objectives.
• Identify user needs and resolve problems.
• Maintains receiving, warehousing, and distribution operations by initiating, coordinating, and enforcing program, operational, and personnel policies and procedures.
• Complies with federal, state, and local warehousing, material handling, and shipping requirements by studying existing and new legislation; enforcing adherence to requirements; advising management on needed actions.
• Safeguards store operations and contents by establishing and monitoring security procedures and protocols.
• Controls inventory levels by conducting physical counts; reconciling with data storage system.
• Maintains physical condition of store by planning and implementing new design layouts; inspecting equipment; issuing work orders for repair and requisitions for replacement.
• Completes store operational requirements by scheduling and assigning employees; following up on work results.
• Maintains store staff by recruiting, selecting, orienting, and training employees.
• Maintains store staff job results by coaching, counselling, and disciplining employees; planning, monitoring, and appraising job results.
• Provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the Amway Chicago ’s products
• Takes care of administrative duties assigned by the operator in an effective and timely manner
• Consistently stays abreast of any new information on Amway Chicago, promotional campaigns etc. to makes sure accurate and helpful information is supplied to customers when they make enquiries
• Tasked with cleaning the store at all times
• Makes sure that toiletries and supplies don’t run out of stock
• Any other duty as assigned by the operator.

6. SWOT Analysis

Just like Amway Corporation, our goal at Amway Chicago is to grow a more efficient marketing machine that does away with the inefficient traditional distribution systems. We’ve gone the length of analyzing our chances in the Chicago market and have properly stated our SWOT analysis. Clearly summarized below is the result of our SWOT Analysis;

• All our products are of high quality and their demand in our Chicago market has peaked.
• We will only recruit experienced salespersons to assist in the sales of the products.
• Build the company on a solid basis of integrity.
• Recruiting and retaining quality employees
• Tight margins will allow little wiggle room for error

Opportunities

• Little barriers to entry allows for immediate business opportunities
• New and viable market
• Multi Level Marketing has always been in the news due to its seemingly contentious scheme of marketing.
• Rising operating costs
• Building/maintaining sales volume
• Parent Club legal issues

7. MARKET ANALYSIS

8. our target market.

The reality of Amway’s networking business model is that besides the retail end customer, the very salespersons recruited or sponsored by the ones higher up in the network also act as end-user retail customers for Amway as they are required to pay an entry fee to join the network.

Aside that, we at Amway Chicago have identified two distinct type of customers for our Chicago store. The first customer is the end user of Amway products. These are people who have needs for health, beauty, and home care commodities. The second customer group will be a good number of people from the first group with an interest in becoming distributors of Amway products.

These two customer segments are very much attractive because they represent people who are most likely to be consumers of all Amway manufactured supplies. The distributors will be individual consumers who have an even stronger conviction and belief in the products as well as have the time to sell the products and find potential people to recruit into the distribution effort.

To be a distributor does not require a huge sacrifice of time, the majority of distributors will have full-time jobs in addition to marketing Amway. This makes the job of distributor all that more attractive, the person is able to adjust their already existing job with another source of income.

• Our Competitive Advantage

From our due diligence, we at Amway Chicago have been able to properly identify concrete competitive advantages that will help us succeed.

• Quality Products

Every product sold at/by Amway Chicago are manufactured and supplied by Amway Corporation. This offers us the unique platform to sell very competitive products that meet the needs of the market.

• Stable Pricing

At Amway Chicago, we will be able to offer great pricing because all our products are sourced directly from Amway Corporation. Although Amway Corporation pays out sale commissions to the various layers of distributors, this grassroots distribution model is still more efficient than the traditional distribution channel, keeping prices competitive.

• Favorable Business Model

Unlike other businesses in the industry, instead of profits going to a large corporation, all profits are dispersed among the user distributors that assist Amway. This arrangement is quite rare, and attractive for the targeted customer segment.

9. SALES AND MARKETING STRATEGY

At Amway Chicago, our marketing strategy will focus on the need to generate visibility for Amway as a company that offers health, beauty and home care commodities. Our primary marketing strategy will be based on grassroots networking. We believe that this strategy is most effective when the person selling the products knows the products and is passionate about what they are selling.

This is specifically why we chose to sell Amway products. We understand that in the MLM industry, networking is the key to increased visibility and distribution. Networking will take place in a number of venues including: the traditional work environment, social organizations, religious organizations, and other gatherings/situations that bring people together.

Distributors are expected to set up a meeting with the prospective person (someone they generally already know and have some sort of relationship with), show them the product catalog and provides them with samples.

Immediately the client must have used the products and impressed by them, another meeting can be scheduled to determine if the person is interested in making a purchase, and/or is interested in an additional source of income selling Amway products.

10. Sales Forecast

At Amway Chicago, we will be tracking both the sales to the individual consumers and the revenue received through commissions from sales from the various distributors. Our sales forecast indicates that initially the bulk of revenue will be from sales to the individual customers.

But as time progresses and more distributors are secured, the amount of revenue from the distributors will increase. We at Amway Chicago have adopted a reasonably conservative sales forecast. We estimate that our total first year sales should reach $1,200,000. Our second year will see sales increase to $2,340,000. The third year, with the addition of such a significant number of outlets, we will see sales increase to $5,192,440.

11. Publicity and Advertising Strategy

At Amway Chicago, our plan is to gather enough brand awareness to leverage the product line into other regions and gain inquiries from potential investors. To achieve this goal to expand and grow, we plan to do the following;

• Amway Chicago will spend $1,450 per month on Public relation services for the next year intended to build awareness of editors and product information insertions, reviews, etc.
• Amway Chicago will also spend $440 per month concentrating on drive time Radio advertising. We plan to experiment with different stations, keeping careful track of results. As with the school fundraising program, we expect the stand and signage to be a substantial portion of our advertising.
• List our business on local directories
• Attend relevant international and local health, finance and business expos, seminars, and business fairs et al
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

Sources of Income

With the help of the products and services that are provided by Amway Corporation, we at Amway Chicago will be able generate encouraging revenue. Amway Corporation manufactures more than 450 products, and via its MLM model, it sells those products all across the globe, generating a good amount of money.

Amway practices direct selling which is ‘A method of selling goods directly to the consumer by an independent Distributor. A Distributor can then introduce further Distributors and generate income from retail profits supplemented by bonus payments based upon the total sales of the group built by a Distributor”. We at Amway Chicago will generate income through:

• The retailing of Amway goods to consumers. Retail margins (mark-ups) on the basic wholesale price represent income to the selling distributor.
• Additional performance and leadership bonuses, paid on the volume of personal business and the business volume we plan to introduce into the business. Various levels of leadership bonuses, dependent upon the overall size and shape of the business, paid on achieving different levels of business performance.

12. Our Pricing Strategy

Amway as a company maintains a stable price for all products. With the Amway Business models, all associates will be able to sell the products of the company directly and also they can make sure that they help in the promotion of the products as well. This will create different levels of people working towards one common goal, and that is to make sure that the company of Amway is able to make a lot of money.

Meanwhile, the functioning of the Amway Business Model is based upon the performance of ABOs (Amway Business Owners). So, for evaluating their performance, Amway has a term known as Product Value, i.e. PV and Group Product Value, i.e. GPV. PV is actually the MRP of the product, and commissions of ABOs are decided as per the PV of that product.

So, in the hierarchy, the top-level ABO will get the product from the company at a discounted price based upon their commission, so he or she can sell that to other by that retail margin. In addition, ABOs get the bonuses as per their performances, plus growth incentives are offered to them, so they stay motivated in making the chain to channelize the multi-level marketing program of the company.

• Payment Options

All our payment options at Amway Chicago will be inclusive and acceptable because we understand greatly that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

• Payment by cash
• Payment via Point of Sale (POS) Machine
• Payment via online bank transfer (online payment portal)
• Payment via Mobile money

We have also chosen banking platforms that will help us achieve our plans with little or no issues. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our products charge.

13. Startup Expenditure (Budget)

To get started with Amway, Individual Business Owners need to pay a $62 registration fee. This is direct profit for the company, but it also comes with a 100% satisfaction guarantee for the first 90 days. The fee provides a welcome kit that helps to get new representatives up-to-date with the various product lines that are offered.

Those who are just starting are also recommended to purchase an $83.90 product kit so the items that Amway sells can be sampled and sold with authenticity. The product kit contains $160 worth of full-sized Amway products to try. Meanwhile, we at Amway Chicago have incurred the following expenses for the launching of our store:

• Storage space: This will be used for the storage of product inventory.
• Service provider fees: We’ve incurred both accountant and attorney fees in the setting up of the business. The accountant will set up the Linton accounting system and the attorney will develop and register the business formation as well as draft some sale agreements for distributors.
• Computer system: The computer system will be used for correspondence, accounting purposes as well as to develop marketing and sales information. The system will include a laptop computer, printer, fax/scanner, and a broadband Internet connection. Earthly Clean will use Microsoft Office and Linton Accounting as their preferred software.
• Assorted types of paper and stationery: Personalized with a logo, return addresses, etc. for catalogs, and brochures.
• Assorted office furniture and accessories

Generating Funding/Start up Capital for Amway Chicago

Amway Chicago is a Store owned by Martha Flinch and Damson Cone. Both have been with Amway Corporation for over 10 years and understand the visions and values of the company. At Amway Chicago, we hope to raise our startup fund through the following ways;

• Generate part of the startup capital from personal savings
• Source for soft loans from friends and family
• Generate fund from angel investors

Note : The owners of the company are willing to invest $200,000 to start up Amway Chicago.

14. Sustainability and Expansion Strategy

The key to a successful business with Amway has to be in the building of the downstream. When working appropriately, the Amway business model is one that can work. The tiered levels of sales representatives in each up line can all help us and our distributors succeed.

The unfortunate fact, however, is that many Amway representatives get involved thinking that they can start their own business for a small price and very little overhead. The reality is that Amway is just like any other business opportunity, but with a small twist – sales reps don’t actually have their own business.

For those in Chicago that are good at sales and love to be social with people, we will offer them a tremendous opportunity for success. The underlying fact is that the Amway Business Model is not a scam. Just that it is not really a pyramid model of business – all it relies on is a granted hierarchy of partakers who purchase, retail and further spread out this sequence to earn more proceed-fractions, which is more of a network than a pyramid.

At Amway Chicago, our sales strategy will emphasize our high quality products and 100% customer satisfaction. We believe that by combining these two benefits, consumers are able to try the available products risk free. This provides them with the opportunity to test them out and determine if they are as good as they claim to be. Once the consumer has recognized the outstanding quality that Amway offers, the option of becoming a distributor becomes more attractive.

If the consumer truly believes in the product, then it becomes that much easier to convince them that there is an excellent opportunity available that allows them to sell a product that they believe in, obtain an additional source of revenue, and make a positive impact on the environment. All of this will be done on a grassroots, one-to-one level.

Also, retailing Amway products enables us provide immediate financial incentive rewards to our distributors. Direct selling involves sales people showing and demonstrating products to obtain orders. The objective involves matching consumer needs with the product.

The better the match, the more lasting the potential for the relationship between the seller and the buyer. The selling process is aided by Amway’s retail strategy to provide high quality, readily purchasable items with a good environmental positioning, offering consumers good value for money.

As with all direct selling activities, the process involves two-way communication and this can be time-consuming. Business success and the resulting financial results are a direct consequence of effort, commitment and personal group motivation.

Personal contact between distributors at one-to-one or group meetings provides the opportunity for individuals to discuss strategies, difficulties, levels of involvement and plans for the future. The income objectives and individual targets may be determined by each distributor based upon what he or she wants to earn.

Checklist /Milestone

• Business Name Availability Check : Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting feasibility studies: Completed
• Leasing, renovating and equipping our store: Completed
• Generating part of the start – up capital from the founder: Completed
• Applications for Loan from our Bankers: In Progress
• writing of business plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Packaging/Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of software applications, furniture, office equipment, electronic appliances and store facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress

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• 13. WE MAY HELP EACH OTHER REALISE OUR DREAMS
• 15. T Knowledge Experience Skill Money THE TIME TRAP TALENT X NO. OF HOURS
• 16. FOUR WAYS TO EARN MONEY
• 17. LIVE INCOME PASSIVE INCOME 1. Monthly Paycheck 2. General Profit 3. Professional Fees 4. Bonus 5. Sales Commission Asset Manufactured Income 1. Rental Income 2. Dividend Income 3. Fixing Deposits Interest 4. Royalties Income 5. Residuum Income When Passive Income exceeds Monthly Expenditure Financial Freedom Understanding Money
• 18. FINANCIAL FREEDOM PASSIVE
• 19. Financial Freedom
• 20. N. R. NARAYANA MURTHY Chairman and Chief Mentor Officer Infosys Technologies Limited Subhash Chandra Chairman of Zee Telefilms Limited and promoter of Essel Group of Companies Dhirubhai H. Ambani Founder Chairman Reliance Group Sunil Bharti Mittal Chairman and Managing Director Bharti Airtel Limited (“Bharti”), Gulshan Kumar Founder T-series group GOOD TO GREAT
• 21. CHANGING TRENDS 1960’s Manufacturing 1970’s Plastics 1980’s Computers 1990’s Physical Distribution
• 22. CURRENT TRENDS 2000’S WELLNESS E-COMMERCE DISTRIBUTION SMART CURRENCY FOLLOWS TREND !
• 23. Apollo Lucknow Apollo Delhi FRANCHISE MODEL SINGLE LEVELING MARKETING Apollo Chennai Apollo Calcutta
• 24. BUILD YOU OWN EMPIRE MULTI LEVEL MARKETING
• 26. Welcoming
• 28. Facts about Amway • Started in US in 1959 with 01 product. • Global turnover starting Rs.30,000 crores. • Debt liberate Company. • Largest Direct Selling company included that world. • 600 patents, 450 Our Class products. • 100 % dollars back guarantee on products. • 32000 product training sessions each year. • Of Amway Opportunity Basis supports more than 80000 visually impaired children.
• 29. AMWAY INDIA – 10 Years 1998-2008 1998 2008 6 Products 100+ Products 5 Offices 120+ Offices 1500 pin codes Service 12000+ Pencil Codes 70% Money Back Guarantee 100% Money Back Guarantee Turnover Rs. 100 Crores Turnover Reset. 1000+ Crores
• 35. A Simple Business System Proven Track record of 50 Yrs in 90+ Countries !
• 36. Amway is concerning helping people to live better life !
• 37. SUPERSTOCKIST WHOLESALER RETAILER CUSTOMER MANUFACTURER MANUFACTURER CUSTOMER DISTRIBUTOR
• 38. PV BV % 10,000 5,00,000 21% 7000 3,50,000 18% 4000 2,00,000 15% 2000 1,00,000 12% 1000 50,000 9% 300 15,000 6% NOTE: 1 PV = 50 BV DISTRIBUTION OF 21%
• 39. SPONSOR & LOCAL TEAM PESONAL 3000 4 CUSTOMER 12000 TOTAL 15000 YOUR CREDIT LEVEL 6% Example STAGE 1 PV BV % 10,000 5,00,000 21% 7000 3,50,000 18% 4000 2,00,000 15% 2000 1,00,000 12% 1000 50,000 9% 300 15,000 6% Note : 1 PV = 50 BV Retail Profit @20% X Personal Sale 3000 Net Commission Earned 900 Gross Monthly Earning 3900 CUSTOMER CUSTOMER CUSTOMER CUSTOMER
• 40. YOU 15000BV F15000 E 15000 D 15000 C 15000 B 15000 A15000 Example STAGE 2 Group BV [ 12 % ] 105000 Total Commission Originated 12600 Commission paid out to Down lines (@ 6% of 15000) 5400 Net Differential Commission Earned 7200 Personal Retail Profit @20% 3000 Gross Monthly Earning 10200 PV BV % 10,000 5,00,000 21% 7000 3,50,000 18% 4000 2,00,000 15% 2000 1,00,000 12% 1000 50,000 9% 300 15,000 6% Note : 1 PV = 50 BV PERSONAL 3000 4 CUSTOMER 12000 TOTAL 15000 YOUR BONUS LEVEL 12% 15000 15000 15000 15000 15000 15000 FRIENDS RELATIVES AQUINTENCES NEIGHBOURS COULIGUES UNKNOWN
• 41. Example STAGE 3 Group BV [ 21% ] 555000 Total Commission Creates 116550 Commission paid out to Down lines (@ 9% of 90000) 48600 Net Differential Commission Earned 67950 Personal Retail Profit @20% 3000 Gross Monthly Earning 7O950 PV BV % 10,000 5,00,000 21% 7000 3,50,000 18% 4000 2,00,000 15% 2000 1,00,000 12% 1000 50,000 9% 300 15,000 6% Note : 1 PV = 50 BV PERSONAL 3000 4 CUSTOMER 12000 TOTAL 15000 YOUR BONUS LEVEL 21% UNKNOWN COULIGUES NEIGHBOURS AQUINTENCES RELATIVES FRIENDS 15000 15000 15000 15000 15000
• 42. PERFORMANCE BONUS DIFFERENTIAL BONUS 4% LEADERSHIP BONUS 1% BOTTOM BONUS 2% RUBY BONUS 21% FIRST TIME : SILVER 21% 3 MONTHDAYS : GOLD 21% 6 MONTHS : PLATINUM 21% 12 MONTHS : F. PLATINUM
• 45. Bangkok……………………………………2000 Kuala Lumpur ……………………………2001 Star Shipping ,Langkawi,Phuket ………2002 Pattaya …………………………….………2003 Bin tang & Singapore …………………..2004
• 46. Kota kinabalu ……………………………2005 Mediterranean Cruises …………………2006 Beijing ………………………………….…2007 Phuket …………………………….………2008 Penang ……………….…………………..2009
• 47. Affordable Start-up Cost with 100% Money back Guarantee !
• 48. ACTIVATION 01 BUY PRODUCTS WORTH 100 PV AND GET YOUR 995/- ADJUSTED BUY PRODUCTS WORTH 60 PV & GET CALMAG WORTH 519/- FREE
• 49. ACTIVATION 02 BUY AMSURE POLICY WITH PREMIUM MORE THAN 10,000 RS AND GET ONE TIMEX LADIES & GENT WATCH
• 50. Can Be Developed Part Time Without Disturbing your current Profession !
• 51. Freedom to Work As Little As Large
• 52. You can control your own income level !
• 53. The Potential to create long term Residual Income !
• 54. The Capacity to builds economy world wide !
• 55. Ongoing training and support system from world’s most succeed ABOs ! Chuck additionally Jane Strehli
• 56. Positioning in front of [1] Wellness Revolution [2] Internet Economy !
• 57. NOPE CONCERNS • CAPITAL • RISK • EMPLOYEES • MAINTAINING ACCOUNTS • EXPERTISE • TIME • HAVING A INFRASTRUCTURE
• 58. WINNERS DREAM TEAM CAN HELP YOU REALIZE YOUR MY
• 59. MEET AFOREMENTIONED PERSON WHO HAS INVITED YOU WITH GRATITUDE And ASK FOR FURTHER INFORMATION & HELP We Believe in you , you are the best.

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Amway India Business Plan 2023 PDF Download

Download Amway India Latest Full Business MLM Plan PDF for Free – Amway Income and Business Compensation Plan PDF

This post will provide you with a PDF of the complete Amway India Business Plan.  You can find the latest Marketing and Business Plan for Amway,  which you can also download in PDF format   at the end of the post.

Amway’s journey was not easy all over the world, especially in India, it was back-breaking. Being an MLM company , Amway faced a lot of allegations that created problems even for its existence.

Amway India is one of the most popular MLM companies globally and one of India’s legal direct-selling companies. Several Indian companies such as Vestige Marketing, Modicare Business, and many more have similar plans to Amway MLM Business Plan .

In this post, firstly, we will provide you with a few details regarding Amway Company, and later there is Amway India Business Plan . You can also download Amway Business Plan PDF .

What is Amway?

Amway, popularly known as American Way AKA Amway, was started in 1959 by two American businessmen Richard Devos and Jay Van Andel, in Michigan, USA.

Amway started functioning in the Indian Market in the year 1998, followed by a few other companies such as Vestige , eBiz , Safe Shop , and Glaze India . After Amway, many other international companies also entered India’s market, such as Oriflame , Tupperware , etc.

Amway Business Plan

If you are familiar with the MLM Business, it will be easy for you to understand the Amway Business Plan.

When anyone joins Amway as a Direct Seller, he is known as ABO (Amway Business Owner). To register yourself as a Direct Seller, it is important to make a purchase of around $100.

As Amway allows people to join as Direct Sellers and earn. Being a Direct Seller, the person has to perform two important tasks.

Product Purchase and Sale

Once you join Amway, you have to purchase Amway products from the company and sell them to others. The profit will be the MRP minus Distributor Price, which is generally termed Wholesale Profit or Wholesale Discount.

Recruitment

Recruitment is also known as building downlines, which is the main source of income in MLM. It provides you with exponential income growth.

Download Amway Business Plan PDF

You can download the Latest Amway India Business Plan PDF that was officially launched on the website of Amway India .

Click the below button and PDF will start getting downloaded to your device.

We hope this post on Amway India was beneficial for you. You were able to understand the Amway Business Plan and download the Amway Business Plan PDF.

If you have any queries or suggestions, you can comment below.

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Amway Business Plan

BUSINESS PLANWHY ?......

• Extra Income

• Quality Time (Time Freedom)

• Income Security

• Financial Freedom

• Royalty Income

• Income diversification

• Helping others

• Name, fame & Recognition

• Life of Significance

• Peace of Mind

• Foreign Trip

How do we earn money

Manpower compounding

Timecompounding

18 year education x Experience = Skill

Skill x Time = Income

Skill rate x time = Income

Example:1000x (10 Hrs.)= 10,000/-

5000 x (10 Hrs.) = 50,000/-

Skill(limited) x time (limited) = Income(limited)

Time & Manpower compounding:

1 skill x 10 Hrs. = A (amount)

100 skillx (100 x 10) Hrs.= 100000 x A (amount)

Type of people

Time Money Income Security

Professionals

Self employee

No Time No Security

Full Time + Money + Income Security

Mr. Robert T. Kiyoskai’s Cash flow quadrant:

E(Employee)

SE (Self Employee)

B(Business)

I(Investor)

- 80% people

- 20% wealth

- Active Income √ = √ X = X

- Hard Work

- Money control them

- 20% people

- 80% wealth

- Residual Income √ = √ X = √ √ √ √ √ √ √

- Smart Work

- They control Money

Traditional Business:

High Investment Infrastructure Skilled Man

power Mentorship HugeMoney

Doctors (specialist)

ManagerWith in 6 to 8 months, you will be lie in B quadrant

But reality is that:

It means that, we never be shift in B quadrent

Mr. Ray Crock Principles for Business (In 1954)

109 Country : 40000 OutletsOne outlet works 10 Hrs/dayThen 40,000 outlet works: 4 Lakh Hrs/day

But in whole life, we people work:

8 Hrs/day X 24 day/month X 12 Months/yearX 40 years/ in whole life = 92160 Hrs/life

If profit/outlet = Rs. 100/Hr

Total profit/Hr =Rs. 4 Cr/Hour

Profit/Day = Rs. 40 Crore/day

- IBO (Independent Business Owner) - Low Investment

Sell with in 6 months: 1 Lakh/day

This man was ill: Sell = NiL

It means active income: √ = √X = X

- Time & Manpower Compound

- Irreplaceable

60% of 90,000 Crs. = 54,000 Crs./Months

3000X30 day= 90,000 Crs./Months

30X100 = 3000 Crs./day

120 Crs./4 = 30 Crs.

Indian Population: 120 Crs.

Customer: 100%Mediators: 60%Manufacturing Cost: 40%

Advertisement

CustomerRetailerWhole ShellerDistributerManufacturer

Market survey - Cash flow

In 1959: Mr. Rich Devos & J. Van andel:

Consumption/months: 6000 x 60% = 3600/-

Saving/year = 3600 x 12 = 43200/-

But its a saving, not a business

1. High investment2. High Risk3. Area dependent4. No authority to give franchisee

40%Manufacturing

20% Discount

10% Govt. Tax

6% - 21% Performance

4% - 9% Royalty Income

6.0 Lakes -------- 21%4.2 Lakes -------- 18%

18,000/- -------- 6%60,000/- -------- 9%

1.2 Lakes -------- 12%

2.4 Lakes -------- 15%

Royalty Income Start after Silver

Manufacturer

Manufacturer YouYou (BWW)

Britt World Wide(BWW)

Britt World Wide

Shopping:Sharing:

Its an Essential requirementIts an habit

6000/- 6000/- 6000/- 6000/- 6000/- 6000/-

1 IBO 2 Hrs/day 6000/- 1200/-7 IBO 14 Hrs/day 42,000/- 3720/-31 IBO 62 Hrs/day 1,86,000/- 12,360/-

103 IBO 206 Hrs/day 6,18,000/- 74,160/-

Average Hrs. = 200/8 =25 People1. No salary2. No Accommodation3. No medical facility

DIFFERENTIAL BONUS 4% LEADERSHIP BONUS 1% DEPTH BONUS 2% RUBY BONUS

21% FIRST TIME : SILVER 21% 3 MONTHS : GOLD 21% 6 MONTHS : PLATINUM 21% 12 MONTHS : F. PLATINUM

Recognition level

FACTS ABOUT AMWAY

STARTED IN USA IN 1959 WITH ONE PRODUCT GLOBAL TURNOVER OF Rs. 48,000 Crores DEBT FREE COMPANY LARGEST DIRECT SELLING COMPANY IN THE WORLD 800+ PATENTS, 450+ WORLD CLASS PRODUCTS

100% MONEY BACK GARAUNTY ON THE PRODUCT 32,000 FREE PRODUCT TRAINING SESSION EACH YEAR The AOF supports more than 80000 visually impaired children.

In 1995: Dr. Man Mohan Singh Finance Minister (After 3yrs: FPIB) Estd : 5th May’1998 in Shri Atal Bihari Bajpai, Government through IDSA

150+ Product & Services. 15000+ Pin codes Services & 24x7 Web Ordering

NUTRILITE, ARTISTRY, ATTITUDE, AMSURE, DYNAMITE, GLISTER, PERSONA, SATINIQUE, SA8, G&H, LOC, DISH DROPS, GVP, CATALOGUE PRODUCTS etc…..

BUSINESS RANKING: AAAAA+ (No. 1 in FMCG)

1.5 Lakhs+ Product & Services in USA

TURN OVER: Rs. 1790 Crores (2009-2010)

No concerns CAPITAL RISK EMPLOYEES MAINTAINING ACCOUNTS EXPERTISE TIME HAVING A INFRASTRUCTURE

BRITT WORLD WIDE CAN HELP YOU REALIZE YOUR

WE BELIEVE IN YOU,

YOU ARE THE BEST

WE ARE READY TO HELP YOU

TO ACHIEVE YOUR DREAMS…!

AMWAY+ BWWARE YOU…?

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