Part of building a successful balanced business is adopting a smart approach to handling an inventory for your business needs. Through the 70/30% Rule, Amway helps IBOs adhere to Best Practices for moving and using products to receive bonuses and recognition. This practice, explained in greater detail in the Amway Rules of Conduct (Rule 4.12), specifies that you must sell or use at least 70% of the products you purchase each month in order to be eligible for bonuses or recognition on that volume.
For many, this Rule probably seems unnecessary. But the idea behind the 70/30% Rule is simple: it's a measure to help keep IBOs from overstocking inventory and overextending themselves financially that could result in volume to qualify for bonuses and recognition. To clarify ... 70% of your personal PV (not group PV) can include a reasonable amount of personal or family consumption or given out as samples or donations, along with your sales to customers.
While it's possible that an IBO could think this may look like a plan for reaping the rewards of the Business, it ends up hurting sustainability and growth, not to mention personal finances. After all, the goal of an IBO Business isn't just to reach a certain qualification - it's to build a profitable, sustainable on-going Business! Maintaining a reasonable inventory, if you choose to have one, can be an important key to long-term success in the Business. The 70/30% Rule is not intended to discourage IBOs from purchasing product - and it certainly doesn't mean that you can't purchase a reasonable amount of inventory to have on hand to service your customers or for personal use. It simply is a way to ensure that products are moving and being used and to help IBOs develop savvy inventory practices to help achieve maximum profitability.
Remember, you're in a Business of your own, but you are never alone. Your Upline, the IBOAI and Amway are here to assist you with what you need to help succeed. We're here to support you in helping people to live better lives.
Please feel free to contact us if you have any questions.