Founded in 1978 by CEO Rex Maughan, Forever Living Products International, Inc. is a well-known MLM company based in Scottsdale, Arizona. The company is most famous for its range of aloe vera based drinks and bee-derived cosmetics, dietary supplements and personal care products.
Through the years, it has been one the largest privately owned companies in Arizona and has a broad network of representatives in North and South America, Europe, Africa, Asia and Australia. The records indicate that the company has 9.5 million global distributors spread over more than 165 countries at present.
Rex Maughan holds a degree in Business from Arizona State University and his dream was to promote wellness and health in a personal but efficient manner. Starting off his career as an accountant in a Phoenix firm, Maughan moved into the real estate arena and finally chose to pursue the goals of creating his own business. He centered on the multilevel marketing method to promotions and came across products derived from the aloe vera plant. He decided that the products from the plant can be best promoted by the direct marketing techniques based on testimonials and word-of-mouth.
The first product meeting of the company was held in Tempe, Arizona in 1978 with 40 individuals focusing on the objective of delivering nature-based products to the public and achieving financial independence through the process. Between the years 1980 to 1981, the sales figures of the company doubled to reach $71 billion, making it one of the fastest growing firms in the US. By 1985, the company held more than 1000 acres of land for aloe cultivation, along with processing plants and research labs in Dallas.
A separate resort division was introduced in 1981 and by the mid-1990s, the company owned 18 resorts spread throughout America. It also broadened its range of products with aloe-based skin care and hair care products, deodorant, aftershave, tooth paste and three different flavours of the aloe juice. The Forever Bee Products was launched in 1983 which included nutritional supplements produced from the food created by honeybees and also from the walls of the hive.
Forever Living ensures an aloe cultivation that is free from pesticides or herbicides. They also have a patented stabilisation process that preserves the freshness of the aloe which enables the products to offer the full potency of its nutritional components.
The MLM scheme offered by Forever Living is similar to the others in the market where one makes money by selling products and inducting others into the team. There are no joining fees and the profit margins that are offered are also good. But some experts point out that the benefits and bonuses offered are below the existing market standards.
Forever Living was also involved in its share of controversies, starting with a tax penalty of 3.5 billion yen imposed on the Forever Living’s Japan division for concealing income. It was also fined 60 million HUF for violating various laws in Hungary in 2004. In 2015 it was rebuked by the UK Advertising Standards Authority, for making incorrect claims about the health benefits of its products.
Many critics say that Forever Living sells a dream that will hit a saturation point with time. But the company has been around for a long time and keeps surprising the critics by its growth rate through the years.