FLP or Forever Living Products International Company (FLPI) is a private network marketing company that has its head offices in East McCormick Parkway, Scottsdale, Arizona in the United States of America.
Forever Living products International Inc. researches, manufactures and sells cosmetics products made from bees, and various drinks made from the Aloe Vera plant. The company also sells personal care products and nutritional supplements, which are made from honey and other bee products.
Origin of Forever Living Products Company
FLP was founded by a renowned businessman Rex G. Maughan, in 1978. He also happens to be the current CEO of the company. Rex Maughan then bought the Aloe Vera of America Company in 1990s, therefore expanding the company to include the Forever Aloe Plantation farming division, a manufacturing division in Texas, and opened The Forever Resort, which is the company’s real estate division that is currently in charge of the FLP properties in the company’s Southfork Ranch.
The ForeverLiving Products however had experienced massive success even before acquiring the Aloe Vera of America Corporation. FLP Company was then in position six, in the Inc. 500 list of the fastest growing privately owned companies in the United States of America.
The acquisition of the Aloe Vera of America Company was however instrumental in the appearance of FLP multi-level marketing company in the Forbes magazine’s list of the 400 largest privately owned companies in the USA, where it was ranked at position 340. The foreverliving company then grew tremendously achieving gross revenue of 1.7 billion dollars in 2010, with over 9.3 million individual distributors all over the world. Forever Living Products company has then employed more than 5, 000 senior offices in its areas of operation in all parts of the world.
History of Forever Living Products, Inc.
As indicated earlier, FLP was founded in Tempe, Arizona in 1978 by Rex G. Maughan. It was however until 1990s that Forever Living Products purchased health Supplement Company called Aloe Vera of America in Texas. Aloe Vera of America started its collaboration with Foreverlovingproducts by selling some of its products to Forever Living, which initially acted as a link between individual product distributors and Aloe Vera of America company. The Aloe Vera of America company then sold its Jelly, Aloe Vera Juice, and lotions in some western States, before it opened up to the whole of the United States of Americas’ market in 1979. The FLP Company has since been very successful in the mlm business although there are some media stations and individual journalists who have likened the company’s products distribution system to that of other pyramid schemes.
FLP Local Expansions
Forever Living began its expansion plan by purchasing some the aloe fields in Texas, back in 1980. The company then went ahead to purchase the Aloe Vera of America that also owned the Texas aloe field in 1981. FLP on the same year opened Forever Resorts; which is one of the resort divisions of the forever company.
It is again until 1983 that the company did major expansions, mostly in its products lines. Forever Living Products Inc. therefore launched the Forever Bee products, which is basically a dietary supplement that consists of bee pollen, royal jelly, pure honey and bee propolis.
The company later; after some extensive market research expanded its dietary supplement products line to include Aloe Vera combined with ginseng, vitamins, minerals, garlic, fish oil and other dietary supplements. It is after Forever Living Products’ expansion efforts that the company was named one of the fastest growing private companies in USA in the Inc. Magazine, occupying position six. This was exactly one year after the Inc. Magazines was officially in operation in 1982.
FLPI’s International expansion
Forever Living Products (FLP) went international as from 1990 to 2009. The company sold products worth over $500 million USD in 1992 and was ranked the second largest private company in Arizona in 1993, according to the top 100 list by Arthur Andersen.
ForeverLivingProducts International Inc. also went fully global in August 1993, when it opened its Forever Living in UK, Forever Living Canada, Forever Living Australia, Forever Living India, Forever Living Nigeria and many other international markets. The company also further expanded its product line to include laundry detergents, toothpastes, deodorants and three other domestic use products. Nearly all these products however, contained an Aloe extract according to the Forbes report of 1995.
FLP recorded an annual revenue that exceeded $1.15 billion USD in 2005. The Forever Living Company ended the year with 55 employees and more than 150,000 distributors. It is later in 2006 that the Forbes named ForeverLiving in its top 400 list of the largest privately owned companies in The US, at position 340. Forbes also named ForeverLiving Products as the largest distributor of bee and aloe Vera products in the world. The company then had over 4,100 employees and was selling natural drinks made from aloe Vera, aloe Vera gel, vitamins, skin, and glamour products in about 100 countries.
The FDA’s food safety act that was introduced in 2009, set strict quality standards for any nutraceutical manufacturers in the United States of America. As a response to the FDA act, FLP international Spent more than $7 million USD to build a new manufacturing plant based in Phoenix. The FLP completed the building of the plant in April 2010 and named it Forever Nutraceutical. The company initially employed approximately 60 professionals to manage the facility. Forever living however continued to operate its forever Aloe Plantations and Aloe Vera America Inc. manufacturing base in Dallas.
Forever Living had however generated revenue of over $1.7 billion by 2010, while it had approximately 9.3 million Forever Living product distributors in its area of operation, in different parts of the world. The New Vision publication reported that FLP had more than 20,000 distributors in Uganda, but only 83 had managed to reach the managerial level where distributors begin to earn from their hard work and recoup expenses. Today, the Forever Living Company is active in more than 150,000 countries and it is still expanding.
Forever Living Products
Aloe Vera beverage is the primary product of FLPI. FLP as by 2015 distributed four different types of “fresh stabilized aloe Vera gel”, with flavors that include an original peach, “berry nectar,” and the “forever freedom.” Other drinks that are distributed by FLP international include spring water and herbal tea.
Forever Living Products is also a major producer and distributor of a variety of personal care, pet care, skincare and household products that are majorly extracted from the Aloe Vera plant. Some of these products include creams, lotions, soaps, deodorants, hair care products, lip balm, aftershave, toothpaste, perfumes, colognes and various laundry detergents.
Forever Bee Supplements
Forever Bee supplement products lines are dietary supplements that consist of bee pollen, royal jelly, pure honey and bee propolis that the company launched in 1983. ForeverLiving Company later expanded its dietary supplement line to include aloe Vera combined with gingeng, vitamins, fish oils, garlic, minerals and other supplements. Today, the product line is sold as a combined health and fitness regimen. The Forever Living international is still active in the market as one of the major producer and distributor of Aloe Vera and Bee products in the world.
FLP Compensation Plan
Forever Living uses a relationship marketing approach to market and pay its forever living product distributors. The FLP marketing plan offers 10 sources in which distributors can possibly use to earn from the company. These sources are: through a personal bonus, retail profit, Novus Customer Bonus, Group Bonus, Leadership Bonus, Gem or royalty bonus, Earned Incentives bonus, exotic trips bonus, General travel bonus or special promotions bonus, and through the annual profit share program.
The FLP compensation plan pays its distributors 35% to 43% commissions for any product they sell on retail prices. It is however free to register in the company as a product distributor and it has no obligations attached.
Forever living distributors are required to buy products from the manufacturer, at a 15% discount. FLP however pays commissions depending on the total volume of the products your entire downline orders from the company. ForeverLivingProducts therefore, pays 18% bonuses for all of your levels in all the generation.
It is however important for your FLP business to achieve a certain sales Quota, for one to achieve higher commission rates in the company. For instance, if you want to be a supervisor, then your business will be required to produce more than 25 case credits that equal a sales volume of approximately $4,725 per month. Out of the $4,725, $756 should come from your personal sales.
You will nevertheless earn a commission of $1653.76, if you successfully generate 25 credits by yourself. You will however be required to have at least 50 customers, assuming that every customer will order products worth 0.5 credits.
FLP Legal Proceedings
FLP international has at one point been the defendant and complainant in a number of cases involving various governmental bodies and individuals, since its inception in 1978. I thought it wise we have a look at them, because some of the lawsuits have led to several changes in the Forever Living products Company.
In 1996, the National Tax Authority (NTA) and the Internal Revenue Services (IRS) combined efforts to audit Ruth and Rex Maughan and other companies owned by this family, for tax evasion. Some of the companies that were also investigated were the FLP International, Aloe Vera of America, Selective Art Inc., and the FLP Japan from 1991 to 1995, following suggestions from some tax regulatory authorities in America.
Rex and Ruth Maughan, AVA, Maughan Holdings, Yamagata holdings and Gene Yamagata also sued the United States of America for disclosing the tax returns of their companies to the Japanese government, after the Japanese media reported in 1997 that FLP Japan had committed a tax evasion offense.
The case has been pending in court until February 2015, when the US district court ruled in favor of the complainants, stating that the United States’ IRS willingly provided TNT with some false information about FLP International and its associates. This disclosure and false information provision was found to violate the United States tax agreements with Japan. The USA district court therefore awarded the family damages that marched their respective statutory limits.
In 2004, the government of Hungary found Forever Living Products Company guilty of violating a number of laws guiding the advertisement, use of cosmetics for medicinal purposes and registration of the forever nutritional products in the country. ForeverLiving was as a result fined $280,000 USD that was equivalent to 60 million HUF.
The scenario was however different is Uganda. Although every health supplement passes through the country’s National Food and Drug Authority before it is allowed into the Ugandan market, the government of Uganda still received several complaints that many of its citizens have been made to believe that multilevel marketing products from foreign countries can heal almost every disease.
Forever Living International was however on the receiving end once more, when a renowned author; Richard Bach sued the company of trademark and copyright infringements. Richard Bach filed a case against Forever Living in 2007, stating that the company had been using his novel; Jonathan Livingston Sagull storyline, character, and some copyrighted excerpts in the company’s marketing plan. He also accused the company of using his novel and motion picture as the company’s corporate logo. The case was however solved out of court through arbitration. The negotiation however resulted to FLP international changing its company logo from its original Seagull sign to an eagle logo that they use up to now! That is all from Forever Living Products (FLP) for today! Peace!