Forever Living Products
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Forever Living Products (aka FLP), is a {{Scotsdale]], Arizona based Multi-level marketing distribution company, who claim to be the world's largest grower, manufacturer and distributor of Aloe Vera-based products.
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[edit] History
Forever Living Products is based on a patented method to stabilise Aloe Vera Gel in order to slow oxidation. On 13 May, 1978, founder Rex Maughan invited 43 people to attend the first-ever Forever Living Products meeting in Tempe, Arizona.
In 1980 the company had its first $1 million dollar sales month, and opened it Aloe Vera of America manufacturing facilities in Texas. In 1984 FLP became the first company to receive the Aloe Science Council Seal of Approval for product purity & consistency. In 1990 the company built a new warehouse to handle its first years where sales exceeded $500 million. In 1998 sales top $1 billion, and the Dominican Republic aloe plantation expanded to 5,000 acres<ref>http://distrib.foreverliving.com/marketing/pageDisplay.do?page=timeline&siteID=GBR&language=en</ref>.
Today from its International Headquarters located in Scottsdale, Arizona, with sales topping $2 billion, FLP is doing business in over 105 countries. FLP claims to be the world's largest grower, manufacturer and distributor of aloe vera; and currently holds over 7500 acres of Aloe vera barbadensis fields divided into 3 countries: USA (Texas), Mexico, and the Dominican Republic.
The resultant product portfolio mainly consists of a wide range of cosmetics, food additives and household goods - from Aloe toothpaste to Aloe Vera Gel drinks in different flavours. Founder, President and CEO Maughan now directs the worldwide operations of over 7.5 million distributors.
[edit] MLM distribution
Growing through a system of Multi-level marketing (MLM), known as "buyers sell", it is presently one of Europe's largest MLM companies.
Distributors are mainly part time agents selling products locally among family, neighbours and friends. Once initiated into the MLM system via a checking procedure and paying an agent registration fee, the selling agent receives a commissioned bonus based on their sales value, portfolio sold and total sales volume<ref>http://distrib.foreverliving.com/marketing/pageDisplay.do?page=bonusPlan&siteID=GBR&language=en</ref>.
The distributor has to carry the cost of stocking a portfolio of the FLP product, as in a traditional shop. The exact value of product required to stock a reasonable sample is debatable (FLP offer starter kits which they suggest a business can be built from), but FLP suggest this initial cost is low compared to a traditional shop, and easily accessible to almost all. However, the value and portfolio of product required clearly depends on the sales technique the distributor employs, what is required by the targeted customers and the number of sales calls the agent makes.
Once a selling agents customers begin to sell product to their acquaintances, an additional percentage commission is allowed for those who introduced others to the opportunity by way of a team building bonus<ref>http://distrib.foreverliving.com/marketing/pageDisplay.do?page=how2&siteID=GBR&language=en</ref>. To encourage this MLM growth, FLP publish media among their distributors, telling of the success stories
[edit] Criticism
Like many MLM systems, FLP has its detractors. These are not normally based on product quality unlike some other MLM systems, but as is usual with MLM on excess predictions of sales volumes and resulting bonuses.
Supporters and merchants involved with FLP contend that it is a genuine and profitable multi-level marketing business opportunity. Critics of FLP contend that like competitor scheme Herbalife that it is a Pyramid scheme<ref>http://query.nytimes.com/gst/fullpage.html?res=9405E2D91739F933A05756C0A963948260</ref>, and that the company does not make enough effort to curb abuses by individual distributors.
FLP like most established MLM organisations has taken steps to address and remove agents who have over sold the potential income opportunity; but an individuals experience of the FLP organisation, and their resultant sales success is most immediately dependent on the agent they agree to distribute FLP products for, the coaching they receive and the amount of effort they individually place into what is their own business.
[edit] Trivia
- In 1990, the companies hotel division Forever Resorts bought the Southfork Ranch, where the Dallas television series was shot
[edit] References
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[edit] External links
[edit] Criticism
- Index to Information about Forever Living Products on MLM Watch (history, lawsuits, consumer complaints)
- Ripoffreport.com"Search for Forever Living Products, thousands of reports on the company"
- www.truelocal.com find out how saturated your area is"in WHAT type in Forever Living Products; in WHERE type in your zip code - and you will find out how many distributors are in just your zip code."
