What is Forever Living? Details of the Biggest Aloe Vera MLM Company


Forever Living is the most successful multi-level marketing company focused on Aloe Vera products.

Moreover, Forever is arguably the biggest Aloe vera producer and manufacturer globally. The multi-billion dollar company sells wellness and beauty products worldwide.

To see how it achieved such success, let’s explore the history and operations of this family-owned business.



Section 1 – The Company

Forever Living Logo

This section covers the key company details about Forever including the company’s history, performance, and ownership.

What is Forever Living? (video)

Forever Living Products International, LLC. is often referred to as Forever Living or Forever Living Products (FLP).

It’s actually an international family of companies, including:

  • Aloe Vera of America, Inc. (AVA), FLP’s aloe refining and production entity
  • Forever Living.com, L.L.C.
  • Forever Living Products Canada, Inc.

FLP produces, manufactures, and markets Aloe vera products worldwide.

The company exclusively uses multi-level marketing and sells mainly health and beauty products through independent distributors called Forever Business Owners (FBO).

Market and Revenue

Forever Living has a presence in more than 160 countries across multiple continents including North America, Europe, South America, Australia, Africa, and Asia.

It’s a vertically integrated company, meaning that it controls the entire value chain including Aloe vera production fields, manufacturing factories, research and development, as well as packaging, shipping and distribution.

Since FLP is a private company, accurate revenue data may not be easily accessible, but various sources give decent estimations. Business for Home provides the following revenue estimations, which indicate a gradual decrease over the past five years:

  • 2016 – $2.6 billion
  • 2017 – $2.6 billion
  • 2018 – $2.5 billion
  • 2019 – $2.4 billion
  • 2020 – $2.31 billion
  • 2021 – $2 billion

IncFact estimates FLP’s 2021 revenue to be over $500 million, with 100 to 500 employees working for the company.

History

FLP’s founder, Rex Maughan was a Soda Springs, Idaho native.

He was raised on hard work and faith. His past experience included two years in the Samoan Islands as a missionary, as well as establishing and managing real-estate conglomerates. He even spent 13 years as an executive for Del E. Webb Corporation.

In 1978, Rex Maughan held the first Forever Living Products meeting with close family and friends in Tempe, Arizona. His goal was to offer the best consumable products proven to promote lasting wellness and health, so that people who try them would automatically become brand ambassadors.

The company had very humble beginnings with Rex selling the Aloe vera products out of his garage.

Who are the top executives of Forever Living?

After FLP’s founder Rex Maughan passed on Saturday, July 17, 2021, his son Gregg Maughan took on the role of company President.

Here are some of the other top executives:

  • Nava Ghaswala, executive vice president and secretary
  • Garin Breinholt, executive vice president/ the Americas
  • Aidan O’hare, executive vice president/ sales
  • Gary Shreeve, executive vice president/ global operations

Forever also has a three-member Scientific Advisory Board. They include:

  • Dr. Peter Pressman, medical doctor and researcher
  • Wallace Hayes, toxicologist
  • Roger A. Clemens, biochemistry and nutrition expert

Who is the owner of Forever Living?

FLP is a privately owned family business which is now managed by Gregg Maughan, the son of the founder, Rex Maughan.

Where is the Forever Living headquarters?

Forever Living Products International is located at 7501 East McCormick Pkwy, Scottsdale, Arizona 85258.

Forever Living’s mission and values

FLP is centered on the “The Forever Way.”

The company explains this concept in the following statement, “There’s only one way we do things and that’s the right way!” Additionally, The Forever Way prioritizes family and delivering the highest quality products.

When starting FLP, Rex Maughan had the idea to help people look and feel better while improving their lives through new business opportunities.

Rex Maughan also set up the Forever Giving Foundation for charitable service.

The foundation supports women and children affected by poverty, hunger and poor medical care, and communities affected by natural disasters worldwide. Donations to the foundation go to other nonprofits that provide funds, facilities, and education to the people in need.

Section 2 – Business Model

Amway business model

This section focuses on Forever Living’s business model including its marketing channels and the business opportunities for independent distributors.

How does Forever Living market its services?

FLP exclusively uses direct selling through independent distributors called Forever Business Owners to get their products to the end consumers. This is combined with an advanced multilevel marketing system to incentivize and grow the number of independent distributors.

How to Make Money on Forever Living

Two methods exist for FBOs to make money on FLP:

  • Buying products at a discount to retail them at full price and get 35-48% profit.
  • Earning a commission from people you sponsor who sell Forever’s products or buy them for personal use.

Note that you cannot earn by simply recruiting people.

How much can you make as an FBO?

Forever’s income disclosure reveals that 89.8% of all buyers globally don’t get a meaningful income from Forever (most buyers don’t participate in the company’s marketing plan).

Only 10.2% of all buyers earned from both the MLM plan and retail profits.

41.4% of the aforementioned 10.2% of all buyers (4.2% of all buyers) had the following income (excluding retail profits):

  • 69% earned an average of $111 per month in bonuses and incentives
  • 30% earned an average of $1,670 per month in bonuses and incentives
  • <1% earned an average of $31,235 per month in bonuses and incentives

How to Sell Forever Living’s Products

FBOs can only sell to end consumers and they have the following selling options:

  • buy wholesale and resell at retail prices
  • buying a forever-approved FBO website, FLP360, to sell products online
  • using an “Approved FBO Website”
  • using a forever-approved online banner or display ad

Forever prohibits selling through online marketplaces or auction sites like eBay or Amazon.

How to Become an FBO

To become an FBO you’ll buy the “Start Your Journey Pak” which gives you at least 2 case credits/ 2 CC (values attributed to Forever’s products which determine your commission and hierarchy in the MLM plan).

You can also buy individual products that give you at least 2 case credits within 2 consecutive months.

Additionally, to be “Commission Qualified” (to receive commissions on your downlines), you need 4 CC every 2 months. Here, 1CC comes from you or your customers, and the remaining 3CC from your team.

How much does it cost to be a Forever Business Owner?

Interested FBOs can buy the initial “Start Your Journey Pak” at USD 331.35 which gives 2CC.

Forever Living’s Compensation Model Explained

Forever Living has multiple levels in its MLM structure with varying commission rates at each level.

The first level is the “Preferred Customer”.

Preferred Customers can purchase products at a 5% discount but cannot sell FLP products, sponsor others, or earn any commission. After purchasing a “Start Your Journey Pak,” you’ll get a 30% discount and can opt-in to the Forever Marketing Plan.

Once you opt in to the Forever Marketing Plan, you become a Forever Business Owner (FBO) with the following levels and commission rates.

Forever Living's marketing planPin
Source: Forever Living*

The illustration shows the discounts you get on personal orders at each FBO level and the commission you earn from each FBO level in your downline.

The Forever Business Owner (FBO) levels include:

  1. Assistant Supervisor
  2. Supervisor
  3. Assistant Manager
  4. Manager

The Manager level also features a range of leadership positions including:

  1. Senior Manager
  2. Soaring Manager
  3. Sapphire Manager
  4. Diamond-Sapphire
  5. Diamond Manager
  6. Double-Diamond Manager
  7. Triple-Diamond Manager
  8. Diamond Centurion Manager

Recognized Managers get multiple leadership bonuses such as recognition pins, paid trips (to the FLP Global Rally), manager awards, bonuses (Gem Bonus and Chairman’s Bonus), and monthly stipends (Earned Incentive Program/ Forever2Drive).

Pros and Cons of Forever Living’s Compensation Model

Forever’s marketing plan has some unique features and a few drawbacks.

The main downside is the FBO 36-Month Policy whereby you forfeit all sponsored downlines if you don’t buy FLP products for 36 consecutive months. That’s not really unreasonable since it’s three years of inactivity.

On the positive side, the main advantage is Forever doesn’t cap incomes, has no minimum capital investment requirements, and offers a liberal buy back policy.

How to Quit Forever Living

You can terminate your Forever Business through a written request.

FLP will buy back your unsold, salable FLP products (except literature) that you bought within the previous twelve (12) months. You can reapply after 12 months and restart as a Preferred Customer if approved.

What happens if Forever Living terminates your FBO contract?

If Forever terminates or suspends you for a particular reason, you’ll have to return, repay, or compensate FLP for all prizes, benefit programs, bonuses, or inventories received from and after the activities that caused the termination.

Forever will give the recouped benefits to your upline.

Even so, you can reapply after 12 months and restart as a Preferred Customer if approved.

Section 3 – Forever Living products

Forever Living aloe vera products

This section covers the products sold by Forever, testing and certification of such products, and other important product-related details.

What does Forever Living sell?

Aloe vera is literally at the heart of everything Forever sells.

FLP sells hundreds of Aloe vera and other nature-infused wellness and beauty products. The products include Aloe vera drinking gels, weight management systems, lotions, skincare, vitamin supplements, and more.

Some of the best sellers are:

  • Forever Aloe Lips®
  • Forever Bright® Toothgel
  • Aloe Vera Gelly
  • Forever Aloe Vera Gel®
  • Forever Aloe Berry Nectar®

There are also holiday gifts, bee products, and essential oils.

How to Buy Forever Living Products

You can buy Forever products in the following ways:

  • From FBOs
  • From the company’s online store
  • From authorized physical FLP product centers

The acceptable payment methods include credit card (Visa, Discover, and MasterCard), check, PayPal, or money order.

FBOs have a minimum order of 0.7 Case Credits and a maximum of 25 Case Credits in a month before requiring Home Office approval. Plus, you’ll have 10 days to report any issues with your order.

Where are Forever Living products made? (video)

Forever produces and manufactures its products.

The company grows 50 million plants on more than 7,500 acres in the Dominican Republic and Texas to produce 65 million pounds of Aloe vera annually.

FLP only grows the Aloe Barbadensis Miller variety which is the most nutritionally valuable variety.

Are Forever Living’s products tested and certified?

The International Aloe Science Council (IASC) certified a range of 30+ Forever products including Sonya Illuminating Gel, Aloe Sunscreen, Aloe MSM Gel, Forever Aloe Scrub, Aloe Propolis Crème, Sonya Soothing Gel Moisturizer, Forever Aloe Bits N’ Peaches, and Aloe-Jojoba Shampoo.

The IASC Product Certification Program certifies products containing high quality and pure Aloe vera.

Independent reviews of Forever Living

In May 2022, TINA.org (Truth in Advertising) filed a complaint against Forever Living with the FTC for the commission to fine FLP for multiple atypical income claims used to promote the Forever MLM business opportunity.

This tends to be a typical scenario with many MLMs since most independent distributors don’t make a livable income. Yet the MLMs usually highlight the potential for making a high-end income in their business opportunity.

An article on The Guardian also noted that Forever’s products tend to be over-priced. However, this can be attributed to many major companies that achieve market dominance.

As for the buyers, most seem to have a positive view of the company since the Forever Living Products International Facebook page has 4.4 out of 5 stars from 23,285 reviews.

Section 4 – FAQs About Forever Living

Amway FAQ

This section answers the questions you may have about Forever Living to help you get a better understanding of the company.

Is Forever Living a pyramid scheme?

Forever’s income disclosure reveals that the majority of people joining Forever do so for the discounted pricing, but don’t participate in the Marketing Plan. Moreover, the company’s policy has restrictions to prevent the Marketing Plan turning into a pyramid scheme by not allowing distributors to buy more products until they sell or use 75+% of previous orders. Besides, pyramid schemes are illegal in the countries where Forever is registered; hence, the registration of the company shows that it meets regulatory standards of an MLM – not a pyramid scheme.

What is the main purpose of Forever Living Products?

Forever products are mainly health and beauty items. The company uses production systems designed to retain the natural state of the original raw materials without artificial preservatives.

Can I join FLP in India or Pakistan?

Forever Living’s Asian locations include India, but not Pakistan. Here are the other Asian locations: Bangladesh, Cambodia, Brunei Darussalam, Hong Kong, Japan, Indonesia, Malaysia, Philippines, Mongolia, Singapore, Taiwan, South Korea, Thailand, and Vietnam.

*Sources

Author: Victor Nyorani

Victor Nyorani - Network Marketing Start

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