Forever Living makes a killing with aloe vera products

Forever Living Products is a multi-level marketing firm that sells a wide variety of health and wellness products that are made using aloe vera.

Rex Maughan founded the company in 1978 as a direct sales business selling aloe vera juice and lotions. The company has since expanded, owning several subsidiaries and having a presence in over 150 countries.

The sustained success of Forever Living over the course of nearly 40 years is a great indication of future success. The company has done nothing but grow and adapt throughout its history, making it a safe bet to continue to do so in the future.

Sign-Up Cost: None

Global Revenue: $2.5 billion

The Good: No sign up cost; products come from company-owned aloe farms; proper training provided for distributors; few complaints against company.

The Bad: Tax evasion accusations against founder; too much emphasis on recruitment; distributors cannot resell items on prominent websites.

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Products

Forever Living has a wide range of products in the following categories:

• Bee Products – All-natural bee honey, as well as supplements made from bee pollen.
• Drinks – A wide selection of beverages, many of which contain aloe vera.
• Essential Oils – Over half a dozen essential oils with different flavors and purposes.
• Flawless by Sonia – A line of makeup and makeup accessories.
• Nutrition – A substantial collection of vitamins and supplements that all promise various health benefits.
• Personal Care – A collection of soaps, gels, bath salts, and other products aimed at improving hygiene.
• Skin Care – More than two-dozen toners, creams, cleansers, and other products designed to improve skin health.
• Weight Management – A collection of shakes, supplements, and accessories designed to help with weight loss.

Opportunity

Forever Living invites independent distributors to join the company and sell its products without any startup fee, although the company does offer a Business Owner Box for a cost of $283 that can help a distributor get his or her new business off the ground. Once they come on board, Forever Living distributors have 10 ways to make money:

• Personal Bonus
• Retail Profit
• Novus Customer Bonus
• Group Bonus
• Team Leading Bonus
• Royalty Bonus
• Earned Incentives Bonus
• Exotic Trips Bonus
• Generous Travel and Special Promotions
• Chairman’s Bonus

Each bonus and promotion is based on earning Case Credits, which are acquired based on products sold. One Case Credit is equivalent to roughly $145 worth of products at wholesale cost. New members are able to receive 15% off products to resell, but that amount starts to increase after achieving two Case Credits within the first two months of joining.

The Good

The lack of startup cost is one of the top perks of joining Forever Living. As mentioned above, earning two Case Credits within your first two months with the company leads to a significant increase in the discount you can receive off of a product’s retail price. However, this is an incentive, not a duty. Thus, the company motivates you as a distributor with a goal and a reward rather than forcing you to comply with a requirement or deadline. This helps to separate Forever Living from a lot of other multi-level marketing firms (1).

The company also does well to provide training to its new distributors to help them get on their feet. They have brochures that help to educate distributors on the company’s vast number of products, as well as training videos that teach sales techniques. The company has also been known to hold workshops for new distributors and connect new distributors with more experienced sellers. All of these training methods make it obvious that Forever Living wants its distributors to succeed, which can’t always be said of MLM companies.

It’s also interesting to mention that all of Forever Living’s products that contain aloe vera are produced on an aloe from farm the company owns. The company harvests the plants by hand and processes them quickly to ensure freshness. This adds authenticity to Forever Living’s product line, as the company is closely involved in the creation of its products, helping to ensure both safeness and quality.

The Bad

Among the black marks on Forever Living in its nearly 40 years in business is an accusation of tax evasion against Maughan levied by both the IRS and Japan’s National Tax Agency. The company countersued and ultimately won, but it’s still not one of Forever Living’s proudest achievements. Forever Living faced another lawsuit in 2007, being accused of copyright infringement for using the characters and storyline from a novel for its logo and marketing plan. The company ultimately changed its logo as part of a settlement.

In addition to legal problems, many have found issues with certain parts of Forever Living’s compensation plan and selling policies. The company does not allow distributors to resell items on prominent websites like Amazon or eBay at a discount. This can make it difficult to sell enough products to make a significant amount of money based on sales alone, even with a sizable client base. This puts a great deal of pressure on distributors to recruit others onto their team, which is how distributors will end up making most of their money with Forever Living. If distributors don’t have experience or training in marketing, constant recruitment of new members may prove difficult, limiting their earning potential. Moreover, unlike with sales techniques, the company doesn’t offer much training when it comes to marketing skills.

Recap

Forever Living Products is undoubtedly a top-notch company with a proven track record. They have a wide range of products and the company goes to great lengths to manufacture them the proper way. It’s simple and easy to join Forever Living as a distributor, and the company has received few complaints, helping it receive an A+ rating and full accreditation from the Better Business Bureau. The legal issues the company has faced, while not great, should not have an impact on a distributor’s experience selling Forever Living’s products.

However, the opportunity offered by Forever Living may not be conducive for those who are new to the multi-level marketing industry. While the company offers training on its products and proper sales techniques, most money will be made through recruitment, which requires distributors to have marketing skills. Without prior experience in multi-level marketing, specifically in recruitment, you may struggle to make a substantial amount of money through Forever Living. This is something to consider carefully before joining the company. Other than that one concrn, Forever Living should be considered one of the best multi-level marketing companies to join.

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