Independent Business Owners (IBOs) must comply with the 70% Rule (Rule 4.12) and

Customer Volume Rule (Rule 4.13) to be eligible to receive bonuses, discretionary

incentives and recognition. Selling products to customers is the heart of the Amway™

business. Amway provides simple ways to track and verify each sale. There are no

inventory requirements for IBOs.

Do

• Carefully review Rule 4.12 and Rule 4.13 (U.S. | Canada | Dominican Republic).

• When you make a sale, capture the customer’s name and valid, unique mobile phone number, as well as the product and retail price to qualify for VCS.

• Each month, ensure your PV meets the requirement of at least 70% customer sales without any personal or family use counting toward the 70% requirement.

• Each month, ensure a minimum of 60% of your PV comes from VCS.

• Use your 10% sales support allowance to purchase products to support customer sales, such as products given to customers as samples or used in demos.

• Consider purchases for personal use, unreported customer sales, products in inventory and products purchased to support customer sales that exceed the 10% sales support allowance as part of the remaining 30% of your PV.

• Ensure your eligibility to receive full BV and full BV Pass-Up Volume by achieving 60% VCS each month (if 60% VCS is not generated in a given month, the IBO’s BV and BV passed

• upline will be prorated according to the percentage of VCS achieved).

• If you generate PV but 0% VCS in a month, ensure you achieve 60% VCS in one of the next five months to avoid Amway ending your IBO Contract.

• If you no longer wish to be an IBO, consider becoming a Registered Customer instead.

• For existing IBOs ONLY. Not for use with prospects. 1

Amway North America | Compliance Messages

Why?

• These Rules help you effectively serve customers in a timely manner and help you build a healthy sustainable business that leads with customer sales.

• VCS are the most profitable sales.

• Rule 4.12 and Rule 4.13 help ensure that all IBOs are focused on generating VCS.

Don’t

• Forget to capture the necessary customer information when making sales from inventory.

• Fail to report customer sales promptly.

• Rule 4.13 Customer Volume

• Applies to IBOs who have not yet reached the Platinum level.

• To obtain the right to earn a Performance Bonus on downline volume during

a given month, IBOs must:

- Have at least 50 PV of VCS in sales to any number of retail customers.

OR

- Make at least one VCS sale to 10 different retail customers.

For existing IBOs ONLY. Not for use with prospects. 2

Why not?

Accurate reporting of customer sales is required by the Rules of Conduct to be eligible

for participation in Amway IBO Compensation Plan income and discretionary incentives

and promotions.