Forever Living Products was first
reviewed here on BehindMLM
back in 2013.
One of the primary concerns raised in our review was the $132 a month autoship recruitment scheme.
We
revisited Forever Living Products
in 2017 and were dismayed that autoship recruitment was still a focus.
Now a report out of Pakistan has raised concerns the same business model is spreading there.
For those unfamiliar with the term, “autoship recruitment” is when affiliates in an MLM company sign up for autoship, and are primarily paid on recruitment of new affiliates who do the same.
Retail is typically insignificant or simply ignored in this business model, resulting in the majority of company-wide revenue generated on affiliate autoship purchases.
When an MLM company fails to generate significant retail revenue, it’s operating as a pyramid scheme.
As reported in the Kashmir Observer on June 13th, Forever Living Products ‘
recently expanded into the Kashmiri market.
‘
A lot of people in Kashmir have joined FLP as distributors and are usually told to buy products worth at least ₹30,000 to start at the company and be able to recruit more members.
The recruiters at the office emphasize recruiting rather than selling.
They ask potential recruits how many people they will be able to recruit rather than how many products they will be able to sell.
Little information is given about the sales of the products and the market.
This is your classic MLM autoship recruitment scheme, and unfortunately it seems nothing has changed at Forever Living Products.
While products are sold in an autoship recruitment scheme, the problem is the purchases are tied to commission qualification.
Affiliates are essentially buying into an income opportunity with a fixed monthly fee. And by nature of the scheme, commissions are paid when subsequently recruited affiliates also buy into the scheme.
If this happens without significant retail activity, the products bundled with affiliate payments become irrelevant.
In light of this taking place in Pakistan, the Kashmir Observer has called on Forever Living Products to
be held accountable for allowing these activities to exist and continue without any consequences.
Whether authorities launch an investigation into the company however remains to be seen.
Neighboring India is currently the largest source of traffic to Forever Living Product’s website.
You can bet if autoship recruitment is happening in Pakistan, it’s also happening in India too.
Six years after we first called them out for it, it seems Forever Living Product simply don’t care whether or not they’re operating as a pyramid scheme.
🤖 Quick Answer
What is autoship recruitment in MLM companies?Autoship recruitment is a business model where MLM affiliates purchase products through mandatory monthly subscriptions and earn primarily through recruiting new affiliates into the same system. Retail sales to actual consumers are typically minimal or irrelevant, making affiliate autoship purchases the company's main revenue source.
Why did Forever Living Products face criticism for autoship recruitment?
Forever Living Products was criticized for implementing a $132 monthly autoship requirement that prioritized affiliate recruitment over legitimate retail sales. Reviews in 2013 and 2017 documented persistent concerns about this compensation structure, which generates revenue primarily from affiliate purchases rather than consumer demand.
How has Forever Living Products' autoship model expanded globally?
Recent reports indicate Forever Living Products has migrated its autoship recruitment scheme to Pakistan, suggesting the company continues promoting this controversial business model internationally despite previous criticism about its sustainability and legitimacy.
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