The Company: Forever Living
Founder: Rex Maughan
Startup Cost: $0 - $352.49
This is a health and wellness multi level marketing company specialising in Aloe Vera products. I found some really good points with this company and I definitely don't think it's a scam. That said, there are some drawbacks to consider before joining like most business opportunities.
The company specialises in AloeVera based health and wellness products and was founded by Rex Maughan in 1978. The company has grown to over 9.4 million distributors worldwide with an annual turnover of over $2.5bn.
They distribute these products through the network marketing (mlm) business model.
Like all mlm companies in the health and wellness space, they claim to have the 'secret' to our optimal health through various products such as nutritional supplements, protein bars, essential oils and more.
I will say that these guys put a lot of information on their website about their operations and actually grow the plants themselves. There is debate on how effective Aloe Vera is among researchers though, and I am no expert in this field, so how effective the product is I'll leave for you to decide.
The Business Opportunity
The opportunity is marketed as a way to achieve your dreams by becoming an FBO (Forever Business Owner). The idea is that you buy the product yourself and then tell others about how great it is.
Eventually you will build a large downline and earn residual commissions, but is this really going to happen for you? I'll get to that in a moment.
The Forever Living Compensation Plan
These compensation plans are often pretty annoying to work out so I spent the time going through this one and give you the rundown on what to expect.
This is normally the part that hits people unknowingly when it comes to costs. There's either a heavy upfront cost to join or an even worse monthly purchasing commitment.
This company was very different in that there was NO fee at all to join. I became a rep with a few clicks of the mouse. In fact I think these guys are a lot more forward thinking that a lot of companies in this regard. I also had no sponsor (because I Googled the company rather than being approached) and their website allowed me to sign up under the closest rep to my location.
That said, you are encouraged to purchase a 'Forever Pack' which costs around US$352.49 at your new distributor pricing.
That will get you qualified with your 2 CC's. A CC (crate credit) is just the amount of points associated with each product. The more the product costs, the more CC's are attached to it.
Becoming Commission Qualified
Anyway, in order to receive a 3% commission on your entire organisation you need 4 CC's every 2 months with 1CC being directly from you and/or your customers. The remaining 3CC's can be earned from your whole teams efforts. If you don't meet this total of 4CC requirement you won't be demoted but you won't get your 'group volume commission bonus' of 3%. In other words, you won't get your commission on what your downline is purchasing as a whole in your organisation.
The great thing I found about this company is that (unlike most mlm's I've reviewed) you will NOT lose your position within the company if you don't buy a certain amount of product each month.
Ways You Can Earn
There are various ways you can earn within this company and I'll break those down for you now.
You will start by earning 15% commission when anyone goes to your free replicated website and makes a retail purchase. Not to be a stick in the mud but this won't happen. Why? Because anyone can sign up for free and get NDP (new distributor pricing) right away. The cool thing is if they do that you'll have someone in your downline and will be working towards progressing in the company.
As you reach the second level, 'Assistant Supervisor', you are eligible for wholesale pricing and will make up to 35% commission on retail sales.
Building Your Downline
This is the bread and butter of any compensation plan and is the only way you'll make any legitimate money. You'll get a small commission of 5% at the Assistant Supervisor level based on what your direct sponsors purchase. This number increases the further up the ladder you climb.
There are various bonuses you can receive and as you progress in rank you become eligible for GVB (group volume bonuses) which are a bonus based on what your organisation is purchasing.
Distributor Rank: Joining for free allows you to get your 15% discount and even sell to others with your free replicated website. Don't expect to be earning anything really until you become Assistant Supervisor (AS) though.
Assistant Supervisor Rank To achieve AS and put yourself into a position to earn you will need to come up with 2 CC's within 2 consecutive months.
Supervisor Rank: To move up to 'Supervisor' level (3rd rank) you need 25 CC's. The cool thing with this company is that those 25 CC's can be gained from your whole team. So once your whole team purchases 25CC's worth of product in any given 2 consecutive month period, you'll be bumped up to Supervisor level.
This is one of the fairest compensation plans I've ever come across though all things considered. I am not a rep or anything and personally the products don't interest me, but I have to call it like I see it. I'm not saying run out and join but the comp plan gets a thumbs up for fairness.
What I Liked
- The company has NO complaints on the BBB website
- It's free to join and there is a low overall first yearly cost
- They don't make you buy products to maintain your rank
- Very dedicated to product quality
What I Didn't Like
- Not much in the way of third party science to back up some of their claims
- Do not display a compensation plan or average rep earnings on their website
- Teach the warm market technicque to build your business which fails the majority
While this company certainly has its perks there is one major drawback that I think is worth bringing to your attention. That is the use of the 'warm market' strategy. This is the 'BUT' I was referring to in the headline of this review.
What this means is you will be taught how to lean on family and friends in order to build your business. Write a list of everyone you know and have ever known and try and leverage those relationships to get recruits and customers. I am not kidding, that is exactly how these companies operate. While this might work for some, it will not build you a profitable longterm business and is not the best approach to building a home based business.
This company does have some strong points that put it in the better class of mlm company as a whole from what I have seen. It does however still embrace a marketing strategy that fails the majority of people time and time again. Whatever you decide, hopefully this has helped you make a more informed decision about joining.