Natural products have a market niche. Forever Living Products International (”FLP”) sells nutritional supplements and personal care products made from bee pollen and aloe vera. Can’t get more natural than that.
FLP has become a competitive force in the natural market. Can it continue to build this momentum?
Background: Established in 1978, by current CEO Rex Maughan, the company resides in Scottsdale, Arizona. In 2006, it ranked #340 on the Forbes 400 list.
There are approximately 4 million independent FLP reps in about 44 countries.
Some of the best known products include Forever Essential and Arctic Sea Super Omega 3. FLP has a quality reputation and is a good example of ethical business in operation.
Commission Plan: A typical MLM plan is in place. Direct selling gets one started on generating commissions. Personal referrals can build the starting base but duplicatable websites are permitted and encouraged.
Once the network distributor has established a downline, overrides arise from downline sales. A volume bonus can be achieved by meeting specified thresholds.
New membership is free, without annual dues and free access to FLP presentation. Commissions are paid when sales reach $250. The plan is unusual; commissions on paid on the retail price of the product as opposed to wholesale cost.
Example: With retail sales of$286 (at a cost of $200), a $286 commission (of about 5-8%) would equate to about $286. There are powerful earning incentives in play with the triple tier bonus system as well.
Some expert MLM marketers opine that FLP should adapt their comp plan to make it more responsive to the unprecedented growth of internet marketing. A newcomer might to think about this further.
Once a certain level is straddled , the member stays there for life. At that point, other incentives kick in: cash bonuses, company contributions to home, car and education.
Training: FLP’s success is based on training. The company endorses “FLP University,” an online site that is geared to “product knowledge; detailed explanations of the marketing plan and incentives; and step-by-step instructions on the ‘how-to’s’ of network marketing.”
One on one coaching is emphasized.
Given the lifestyle attention to health and environment, personal fit would be something new member should think about. Some FLP members feel that, despite online access, their success required tapping their warm market, e.,g., personal referrals through calls, parties and public appearances.
Community: FLP created the ‘Forever Giving Foundation’ to partner with worldwide charities. The Foundation is renowned for fighting poverty and hunger and offers pediatric medical aid. Disaster aid is part of their work.
Nutshell: Forever Living is alive and strong. The business opportunity may well be living forever in the universe if their past is an indicator. For the person who is willing to train and build a downline, it is real contender.
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