The success of the Amway Business relies on the cooperation between Upline Sponsors and Downline Distributors. To reward the conscientious efforts a Sponsor made to train new Distributors, Amway has set up the 6% Leadership Bonus.
When both the Sponsor and his Personally Sponsored Downline reach the 21% Monthly Performance Bonus Level, the Sponsor will no longer enjoy the Performance Bonus differential. In order to provide the Sponsor with incentives to develop a Platinum Distributor and to compensate for the hard work involved in doing so, Amway provides payment of a 6% Leadership Bonus to the Sponsor.
A Distributor who personally sponsors at least one 21% group and who achieves the required Personal Group PV will be entitled to all or part of the 6% Leadership Bonus. Personal Group PV includes the PV of the Distributor himself and his Personally or Foster Sponsored Distributors and their Downlines who do not achieve 21% (no matter they are Platinum Distributors or not). The calculation method for Personal Group BV is the same.
The 6% Leadership Bonus is paid each month by Amway to a qualified Sponsor. The amount is all or part of the 6% of the BV of his Personally Sponsored 21% Groups.
While a qualified Distributor earns a 6% Leadership Bonus on the Personal Group BV of the 21% groups that he personally sponsors, his qualified Sponsor is entitled to receive a bonus that is 6% of his BV or the established 6% Minimum Guarantee amount, whichever is greater.
The 6% Minimum Guarantee is set up to ensure that every qualified Distributor in the Line of Sponsorship can get the 6% Leadership Bonus. This 6%* guarantee amount is based on 6% of the minimum BV required to reach the 21% Performance Bonus Level. In this performance year, the PV/ BV ratio is 1:16, the 6% Minimum Guarantee is $160,000 BV (i.e. 10,000 PV) x 6% =$9,600.
If you receive the 6% Leadership Bonus generated from your Personally Sponsored 21% Groups, and the 6% Leadership Bonus from your Personal Group BV is insufficient to fulfill the 6% Minimum Guarantee to your qualified Upline Sponsor, Amway will deduct part of your 6% Leadership Bonus to fulfill the 6% Minimum Guarantee to your qualified Upline Sponsor.
* To ensure its effectiveness, the 6% Minimum Guarantee amount will be revised whenever the PV/BV ratio changes. The adjustment will be announced in Amway Express and Distributor Price List.
All of the 6% Leadership Bonus
If your Personal Group PV equals or exceeds 10,000, you will receive all of the 6% Leadership Bonus generated by your Personally Sponsored 21% Groups
The 6% Bonus you received is = $200,000BV (12,500PV) x 6% = $12,000
Part of the 6% Leadership Bonus
If your Personal Group PV is between 4,000 and 9,999, you will only receive some of the 6% Leadership Bonus generated by your Personally Sponsored 21% Groups because you have to ensure that your qualified Upline Sponsor will receive the 6% Minimum Guarantee of $9,600.
The 6% Leadership Bonus you generated= $64,000BV (4,000PV) x 6% = $3,840
The difference between the 6% Minimum Guarantee and the 6% Leadership Bonus you generated = $9,600 - $3,840 = $5,760
The 6% Leadership Bonus generated by your Downlines = $200,000BV x 6% = $12,000
Some portion deducted to fulfill the 6% Minimum Guarantee to your Upline - $5,760
The 6% Leadership Bonus you actually receive = $6,240
If your Personal Group PV is less than 4,000 and you personally sponsor two or more 21% groups, you will receive only part of the 6% Leadership Bonus generated by your Personally Sponsored 21% Groups because you have to ensure that your qualified Upline Sponsor will receive the 6% Minimum Guarantee of $9,600 .
The 6% Leadership Bonus you generated = $48,000BV (3,000PV) x 6% = $2,880
The difference between the 6% Minimum Guarantee and the 6% Leadership Bonus you generated = $9,600 - $2,880 = $6,720
The 6% Leadership Bonus generated by your Downlines = ($200,000BV+$160,000BV) x 6% = $21,600
Some portion deducted to fulfill the 6% Minimum Guarantee to your Upline = $6,720
The 6% Leadership Bonus you actually receive = $14,880
None of the 6% Leadership Bonus
If your Personal Group PV is less than 4,000 and you personally sponsor only one 21% group, you will not receive any 6% Leadership Bonus. The 6% Leadership Bonus generated by your Personal Group and your Personally Sponsored 21% Group will be paid to your qualified Upline Sponsor.
The 6% Leadership Bonus you generated = $64,000BV (3,000PV) x 6% = $2,880
The 6% Leadership Bonus generated by your Downlines = $200,000BV x 6% = $12,000
The 6% Leadership Bonus you actually receive = $0
The 6% Leadership Bonus your qualified upline receive = $12,000 + $2,880 = $14,880