Amway India Business Plan | Step by Step Full Guide

Amway is a leading MLM Company which have lots of allegations so far. Till now the journey of Amway was not easy all over the world and especially in India, it was back-breaking.

Amway India is the most popular MLM company in our country and several Indian companies have copied the Amway MLM Business Plan. Amway is one of legal direct selling companies in India.

This post will give you, step by step guide for Amway India Business Plan, Products, Alternative Company, & Future.

Amway India

Amway India Business Plan

So American Way AKA Amway was started in the year 1959 by two American businessman Richard Devos & Jay Van Andel at Michigan, USA.

In the year 1997, Amway put its legs in the Indian Market. Subsequently, the number of MLM companies in India grown rapidly.

Vestige, eBiz, Safe Shop, Glaze India are popular Indian MLM company started just a few years after Amway. And following the Amway, various international MLM companies also focused in India. Few popular names are FLP, Herbalife, Oriflame, Tupperware, & Avon.

Amway Business Plan

If you are familiar with MLM then it will be easy for you to understand.

When a person joins Amway as a direct seller, then the person is called ABO (Amway Business Owner).

Buying Products of around 100$ is compulsory in Amway India. If you don’t have 100$ to purchase Amway products then you are unable to start MLM business with Amway.

Product Selling

So after joining Amway, you have to sell Amway products to your friends, family, and colleague. Your profit in product selling will be MRP minus Distributor Price, which is often called Wholesale Discounts or Profits.

Recruitment or Building  Downline

Recruitment or we can call building downlines is the main source of income in MLM. It offers exponential income growth.

You have to add active people in your downline. So when they purchase Amway products and add new ABO in their downline, it will help you to earn more.

But it is not as easy as it seems.

Compensation Plan

Analyzing the Compensation plan or income plan is mandatory before joining any MLM plan. Because it will help you to understand how and how much income you will generate?

Amway income depends on the product purchase made by you and your downline. 

Amway and every genuine MLM Company will never pay for only recruitment, So you and your downline have to focus on product purchase.

PV (Point Value) and GPV (Group Point Value)

Every time when any ABO purchase a product from Amway, he earns a few points called PV. 

1 PV is approximate equals to 100Rs.

If you purchase a product of 1000Rs, you will earn 10PV, which will later be used to calculate your monthly earning.

PV and GPV are the same things, but GPV is PV earned by your downline.

PVCommision Percentage
100 PV6%
500 PV9%
1200 PV11%
2400 PV13%
4000 PV15%
7000 PV18%
10,000 PV21%

BV (Business Value)

BV is the total amount received by Amway on each purchase. 

To calculate BV, just eliminate taxes and wholesale profit. 

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For example, if you purchase 1000Rs products from Amway, then after cutting government tax and cashback, Amway will receive 800Rs and that is BV. It is just an example, and BV varies.

Like PV, BV is also used to calculate the income.

From September 2019 Amway has updated its income plan. There will be another post to understand Amway’s Core Plus Plan.

Amway India Products

Products are most important in every MLM company. Before joining any MLM company, you must check that, products are

  • Reliable,
  • Price reasonable,
  • and demanding.

But in the case of Amway India, products are highly overpriced.

Vestige-Products-Review

Vestige Products Price List and Modicare Products Price List overlaps with Amway. And if you compare it, you will find that Amway’s products price are too high compared to other MLM companies.

Many of Amway’s ABO argues that Amway products are high in quality and Organic.

But it doesn’t make any sense, because most of the Indian people can never afford that much cost and So giving excuse is worthless.

MLM was just started for marketing purposes and Personally, I feel marketing only succeeded when you offer products according to your customer.

You can check the Amway Products Price List here. and Amway India Products Catalogue Here.

FAQ

Amway takes any fees to join?

No. According to Direct Selling Guideline 2016, no MLM/Direct Selling firm is allowed to take joining fees. But like most other MLM companies, initial product purchase is also compulsory in Amway.

There is any other alternative to Amway India?

There is no lack of MLM Company in India. So there are lots of alternatives to Amway available in India. But before joining any MLM company, you should check product quality and the product should be reasonable to the price. Vestige Marketing, Modicare Limited, Mi Lifestyle, RCM are other purely product-based MLM companies.

Never choose those MLM companies which use dummy products like suit length, computer courses.

Future of Amway India?

We can’t easily predict the future of Amway India. But according to a report published by TOI, In 2017-18 Amway sales dropped 6% and in 2018-19 sales got lower by 2%.

After all in India, there is high competition between MLM companies.

Can we get success through Amway or any other MLM?

It depends on the skills and ambition a person bear. But the MLM success rate drive-by Jon M Taylor in inevitable.

Jon-m-taylor mlm research

Jon M Taylor’s 15 years long research is officially publicized by FTC (Federal Trade Commission) itself. Jon analyzed more than 300 MLM Companies including Amway and found that only 0.04% of people get success in MLM, which is even worse than getting success in gambling.

He also explained how MLM is top-weighted and How MLM Companies promotes incentivized product purchase, so at the end 99.96% of MLM participants lose their money. You can read his research book pdf: The Case (for and) against Multi-level Marketing.

So you required various skills such as presentation, marketing, communication, and the perfect timing to start MLM, to get success. But one should be clear that getting success in MLM is one of the hardest jobs to do.

Conclusion

I hope this post on Amway India Business Plan is beneficial for you. You are able to understand about Amway step by step. We will try to bring, another detailed post on Amway’s compensation plan.

If you have any queries or suggestions, please do comment.

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