Forever Living Products
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| Forever Living Products | |
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| Type | Private |
| Founded | 13 May 1978 |
| Headquarters | Scottsdale, Arizona |
| Key people | Rex G. Maughan, Founder, President, and CEO[1] |
| Industry | Network Marketing |
| Revenue | $2.1 billion[2]in 2007 |
| Employees | 8.75 million distributors in over 120 countries[3] |
| Website | http://www.foreverliving.com/ |
Forever Living Products (FLP), is a Scottsdale, Arizona based Multi-level marketing distribution company that sells aloe vera drinks, as well as aloe-vera-based aromatherapy products, cosmetics, dietary and nutritional supplements, lotion, soap, and tooth gel products. The company claims to be the world's largest grower, manufacturer and distributor of Aloe Vera-based products.[4]
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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 its 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 (20 km²)[5].
Today, with sales topping US$2 billion, FLP is doing business in over 125 countries. FLP claims to be the world's largest grower, manufacturer and distributor of aloe vera; and currently holds over 7500 acres (30 km²) 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 flavors. Founder, President and CEO Maughan now directs the worldwide operations of over 9 million distributors.
[edit] MLM distribution
Growing through a system of multi-level marketing (MLM), known as buyers sell, it is presently one of the world's largest MLM companies.[citation needed]
Distributors are mainly part time agents selling products locally among family, neighbors and friends. Once initiated into the MLM system via a checking procedure (there is no agent registration fee), the selling agent receives a commissioned bonus based on their sales value, portfolio sold and total sales volume[6].
The distributor initially finances his or her own sample of the FLP products (subsequent orders from the company made by the salesperson only takes place after a customer orders products, unlike in a traditional shop). The newly recruited salesperson can choose from two values of products required for a reasonable sample (FLP offer starter kits which they suggest a business can be built from), but FLP suggest this initial cost is very low compared to a traditional shop, and easily accessible to almost all.
Once a selling agent begins to sell products to their acquaintances, an additional percentage commission is allowed for those who introduced others to the opportunity by way of a team building bonus[7]. 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 based, 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 business opportunity.
[edit] Trivia
- In 1990, the company's hotel division, Forever Resorts, bought the Southfork Ranch, where the Dallas television series was shot.
[edit] References
- ^ Forever Living
- ^ Forever Living Products
- ^ Forever Living
- ^ Forever Living
- ^ Forever Living - Company Timeline
- ^ Forever Living - Bonus Plan
- ^ Forever Living - How Does it Work?
