Amway United Kingdom & Ireland has been undergoing some challenges this year, with an investigation by the DTI (now BERR) into Amway’s business being triggered by a concerted campaign by Amway critics on the internet. In response to the risk of having the business shut down, Amway UK & Ireland put in place a freeze on all sponsoring and the use of unauthorised BSM (Business Support Materials). Retailing of products was still permissible.

As you can imagine, such a freeze and uncertainty could easily have quite disastrous effects on the growth of individual IBOs businesses. Perhaps those most greatly affected would be those IBOs striving to achieve Platinum and above and their associated rewards, such as free incentive trips.

While there’s been some ongoing conflict between IBOs and Quixtar in the United States, Amway UK & Ireland has stepped up to take care of IBOs in this situation, changing and simplifying the requirements to qualify for various bonuses and trips this year. Below is the letter from Amway UK branch manager Tom Denham to all Platinums and above –

Dear Leaders,

In a letter dated June 5th of this year, we addressed your concerns with respect to the general ability of Independent Business Owners (“IBOs” to complete the required Sales Incentive Programs and Non-Cash Awards (“SIP/NCA”) and core Sales and Marketing Plan (“SMP”) qualification criteria as a result of the current moratorium on IBOs’ sponsoring activities in the United Kingdom and Republic of Ireland (“UK/Rol”). We have now relaxed the requirements for the SIP/NCA and SMP criteria in recognition of the need for Amway to be as supportive as it can to you, our leaders, over this challenging period.

Consequently, the purpose of this communication is to present you with a summary of the modified SIP/NCA qualifications.

I. Core Award Levels:

An IBO may now use any 18% months achieved during the months of May to August, 27 to count as a qualified month for Platinum and above award levels provided that the IBO has at least three (3) qualified (21%) months prior to the month of May 27.

The above also applies to qualification based on one (1) Qualified Leg (“Q”) and 4, side volume during the months of May to August, 27, providing, however, that the IBO achieves at least 12% Performance Bonus level outside of a Qualified Leg.

II. Founders Volume Incentive:

IBOs seeking qualification for the Founders Volume Incentive award will be granted one (1) additional grace month for the months of May to August, 27 provided, however, that the qualifying IBO achieves at least an 18% Performance Bonus level for that month. The remaining qualification criteria for the Founders Volume Incentive award connected to the Leadership Training Seminar (“LTS”) qualification remains the same.

III. Leadership Training Seminar:

In addition to inviting all of last year’s qualifiers to this year’s event, we will remove entirely the New Sponsored Volume requirement for new qualifiers in this Fiscal Year (“FY”).

But, that is not all! All newly qualified Platinums in this FY will also be invited to join UK/RoI leaders to the LTS that will take place in the Spring 28.

IV. Volume Equivalent:

The Q12 Volume Equivalent qualification criterion has been reduced from 144, PV to 138, PV.

V. Platinum Income Guarantee:

We will take the average monthly earning of each Platinum IBO over the months of January, February and March, 27, and apply that number when determining minimum Performance Bonus payments to be made to Platinum IBOs over the months of June, July and August, 27.

VI. Terms and conditions:

The SIP/NCA modifications discussed above will be implemented at the complete discretion of Amway UK/RoI in accordance with the SMP found in your Business Manual, which is part of the Terms and Conditions of your IBO Contract and incorporated therein by reference. Amway UK/RoI, in its sole discretion, reserves the right to change any or all of the above SIP/NCA modifications, in whole or in part, at any time and for any reason provided, however, that Amway UK/RoI agrees to notify you of any such changes, in writing, through the Amway UK/RoI official publications and/or web site all in accordance with local laws and regulations. The SIP/NCA modifications are subject to the following restrictions: (i) the SIP/NCA modified criteria are open only to UK/RoI resident IBOs of Amway UK/RoI in good standing with Amway UK/RoI consistently during the period ending this SIP/NCA programme; and (ii) the SIP/NCA programme shall not apply to IBOs registered as debtors or those IBOs who have manipulated their personal qualification for personal gain.

We hope the above modifications will support you in your business building efforts and allow you to continue to focus on achieving your core and SIP goals for this fiscal year.

Wishing you all the best,

Yours sincerely

Tom Denham

Branch Manager, UK / RoI

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