Forever Living, A Scam Or The Real Deal?

Forever Living, A Scam Or The Real Deal?

Coming a few months after the sudden collapse of Telex Free, an online “marketing” firm which asked unsuspecting individuals to invest huge sums of money on the promise of getting impractical returns, my interview with Forever Living’s Matthew Leach could not have come at a better time.

I realized much later that his move to take charge of our appointment right from the very start (never mind that it was I who reached out to him), was all part of a wider set of occupational tactics picked from his involvement in multi-level marketing over the years.

While on the phone, prior to the actual meeting we had exchanged greetings and it was then that I realized from the “muzungu” accent that I would be dealing with a foreigner, so I had to up my seriousness. I agreed to meet him at a quiet coffee shop just next to the newly built Acacia Mall in Kisimenti, at five the next day. As I was pacing to the venue on that chilly Tuesday evening, his phone call came as no surprise; he had arrived and was seated at table nine patiently waiting on me. Remembering to apologize for my late arrival, I took a seat and the interview got underway.

A professional nutritionist and fitness instructor, Matthew’s engagement to Forever Living can be likened to a not-so-secret family recipe passed down from one generation to another. While growing up and still under the care of his parents, Matthew’s brother suffered regularly bouts of asthma and eczema, which drove his parents to give the products a try. Encouraged by the positive results and the business side to it, they stuck with the products and later incorporated their children into the program.

Founded in 1978 by current C.E.O, Rex Maughan, Forever Living Products International, Inc. (FLPI) is an Arizona-based multi-level marketing company that sells aloe vera-based drinks and bee-derived cosmetics, nutritional supplements, and personal care products.

Responding to the comparison I made earlier, he had this to say. “The kind of business that Forever Living is involved in, is in no way similar to the dupery that many ignorant Ugandans were subjected to under the Telex Free scam.” He was quick to point out the differences between the two: starting with the fact that one is fully registered and legally permitted to operate in Uganda and the over 160 countries it exists. He also made mention of the fact that while Telex Free barely lasted a year, Forever Living boosts of a 36 year history and is growing its over 9.5 million user and distributor base rapidly.

A major point of comparison that was drawn between FLPI and illegal pyramid schemes is that its participants are said to be rewarded primarily for recruiting new members to the organization, rather than for selling products to genuine end-users, a practice synonymous with Ponzi schemes.

After only a year, Matthew was earning in the excess of 1000 USD every week and he decided to take things to the next level by exploring the prospects of a virgin African market.  Two weeks in Uganda is all it took for him to make up his mind about what he wanted to do, and where. He came back immediately after returning home to sale off all his belongings and say his good byes’.

After launching in Uganda, and barely two years later, in Kenya, Matthew set off on his way to South Africa where he spent a year growing his network.

True to the saying, east or west, home (Uganda in this case) is best, Matthew’s journey has seen him explore the African continent and Uganda in particular. He is set to walk his Ugandan bride down the aisle later this year. Tina’s success as a protégé under Matthew’s guidance ,despite her being a professional lawyer,  laid  proof to his later assertion that just about anybody can succeed at multi-level marketing, -all it takes is the visionary guidance of a determined sponsor.

Pretending not to be distracted by its endless buzzing, I insisted that he answer his phone, to allow me clear my thoughts from the being consumed into what now seemed like an attractive way to make a living.

“Ah, that was a young corporate I met last evening. She’s expecting her second baby and isn’t happy where she works. I opened her eyes to the possibility of limitless returns and financial freedom.

Look Matthew(referring to me),” he was quick to add, “...unlike all those scams out there, what Forever Living offers is an opportunity for anybody who knows anybody to earn clean, residual income with an unconditional money back guarantee. Even if I chose to stop working this very moment, I would continue earning and so would my children and family, after my death. I have business in about 19 countries, some of which I only discovered the other day.

Who are the majority of your clients I inquired? “Our ideal client is anybody breathing; tall, short, black, white, basically anybody with a desire for better health, longer life, and money. One doesn’t have to be sick to use our products, there is something for everyone.”

According to Wikipedia, FLPI launched its Forever Bee products—a dietary supplement line consisting of royal jelly, bee pollen, bee propolis, and pure honey, in 1983. The company later expanded its product line to include dietary supplements consisting of aloe combined with vitamins, ginseng, minerals, fish oils, garlic, and other substances.

The company now also markets various personal care and household products made from aloe, including lotions, creams, soaps, hair care products, deodorant, aftershave, lip balm, toothpaste, colognes and perfumes, laundry detergent, and a burn salve.

It’s not a rose bed as one may choose to think, because of the freedom associated with multi-level marketing many people fail to strike the perfect balance and end up devoting insufficient time to their work. It is those who create the false impression that this is a business not cut out for everyone. Matthew however pointed out that it is and has always been part of his strategy to sit down with his those under his patronage and offer training and guidance for them to be able to maximize their full potential.

Under the Multi-level marketing (MLM) model, also referred to as network or referral marketing, the sales force is compensated not only for sales they personally generate, but also for the sales of the other individuals that they recruited under them. This recruited sales force is referred to as the participant's "downline", and can provide multiple levels of compensation.

Forever Living Products International , just like many other companies using Multi Level Marketing models have been frequently subjected to criticism and lawsuits mostly arising from their similarity with illegal pyramid schemes, the cult-like behavior, product price fixing , high initial entry costs (for the marketing kit and first product purchases), and their emphasis on recruitment of others over actual sales. Also part of the criticism is the fact that aloe vera products and plants are nowadays locally available (many grow them in their back yards and can simply snap a leaf off and squeeze the gel out), so it is difficult to see the business sense in it.

However, logically speaking there are a few thought provoking pointers that I reckon would support a fair conclusion to the question about FLPI’s case.

Firstly, if there was anything phony about their operations Forever Living would not have withered through a series of hard economic times to exist all these years. It also would have never existed among the world’s most “successful” and highly regulated economies such as the United States and the UK. Plus, for an entirely debt free company, that only last year recorded a sales turnover in the excess of 2.8 BILLION USD, they seem to have their financials  in order and can’t therefore be faulted in that regard.

The existence of an unconditional 60 day money back guarantee across the entire range, if a buyer is not satisfied with the product is in place to avert cases of uninformed purchases and fleecing. It is therefore hard to believe that they would have been able to enjoy the kind of success they have seen even with such options on the table, if the products were not superior.

I am also a subscriber to the principal of common sense, and judging from the diverse array of respected professionals they have been able to enroll as sellers, distributors and users overtime, one would be at distinct odds to write off all these as brainwashed.

But then I am drawn to wonder, If at all their products are significantly superior to the more readily available , and cheaper options, why then are they unwilling to invest in reputable independent research  to prove those claims. Why the secrecy regarding actual contents of their vitamins and minerals even with the existence of patents and copyright laws.

I happened to chance on a failed pitch by an unfortunate rookie sales representative during one of my recent taxi journeys. Her seemingly enlightened target went to extreme lengths schooling her about the products she was attempting to sale. When she spoke of her sponsor’s fortunes to back her claims about its business case, he was on hand to clarify that it was only those at the top who stood to benefit while she and her like-minded colleagues at the bottom, would naively continue toiling to grow their sponsor’s incomes.

Curious on how he would go about a first time meeting with a random potential client, Matthew envisaged me as that potential client and then went ahead to casually introduce himself. He skillfully eased me into a conversation about my “daughter” after glimpsing at her picture as a screen saver on my phone (for the record, she is my niece).We were soon joking about her smile and the silly statements she is found of making, plus that discomforting skin rash she catches every now and then . That was shortly followed by an aptly presented pitch on how a product he was familiar with would help solve the problem. Before I knew it, we were exploring the additional financial benefits of using the products and exchanging contacts. According to Matthew, there’s nothing to lose from pitching to a total stranger, friend or family member. The worst that could happen is someone respectfully saying they are not interested in the idea, at which point you offer them your number and close by saying, “Thank you for your time, please think about it some more and if you change your mind or know somebody interested in making some money, have them get in touch with me.”

Ignoring the possibility that it could have been a marketing ploy, I once overheard my cousin on the phone delivering a sermon about a particular product she had discovered.

“I use the gel and propolis cream with amazing results. I had a bad case of reoccurring spots, none of those mainstream products worked and I mean nothing!! The propolis cream did the job! My skin feels soft, it took the oily shine away. The deodorant is amazing! As for the prices I think you can buy cheap similar stuff but the question is, do they work? I am self-employed and make a good side earning selling these products, I have made every penny. I went to a party, bought sum stuff and told my friends and family about them and made my money back.”

Among the benefit associated with Forever Living products is the car plan scheme and global travel annually, in the most luxurious location, all fully paid by the organization. “Tina had never been outside Uganda, but thanks to Forever Living, coupled with her hard work, she has been to South African, United Kingdom and Hawaii in the short time she has been working.” Matthew’s face lights up as he jokes about how easy it has been for her to grow her network. “Her friends are always asking what she uses to get her skin looking like it does, she is a product of the product!”

Matthew is in the final stages of opening the doors to another fruit of his hard work with Forever Living Products; The Marafiki Safari, a tours and travel company complete with accommodation services. He and a number of friends are also starting a charity organization whose core objective will be to save the Queen Elizabeth National Park from environmental degradation and wildlife poaching.

FLPI's products are sold through online distribution chains by the company's network of independent distributors in over 160 countries around the world. Accordingly, intending members can only join under a sponsor, creating a parent child relationship which demands full cooperation between sponsors and their down lines.

Simply translated, you have to support those below you, in order to grow yourself.

Given all the above, what you and I have been subjected to in the past is no more than a rollercoaster of unfounded personal opinions and isolated cases of success or failure, (instead of a well-argued case backed by scientific and statistical facts, for or against). Mine is therefore a personal conclusion based on the contents of this particular piece:

·       Multi-level marketing is very legal and so are the activities of Forever Living international.

·       This kind of business is actually rewarding.

·       Even as much as anybody can try it out, not everybody is cut out for it.

·       One requires to work hard and be dedicated to realize some benefit.

·       Forever Living products have cured a number of ailments over the years.

Matthew’s word of advice to those willing to join is to pick what product they want to deal from the vast array, and to realistically align ones expectations with realist .He goes on to recommend that those who are interested should give it at one year of consistency before they can make up their minds on perusing it full time. For those already involved, Matthew’s advice is to talk to as many people as possible and seek guidance from their sponsors.  Anybody who might be interested in giving it a try can get in touch with Matthew Leach on +257775941189 or send an email to matt@absmangement.com