Forever Living Products’ Leadership Bonus pays affiliates on sales volume generated down three Manager generations.
To qualify for the bonus affiliates must meet sales volume requirements, which can be met entirely with self-purchase (no retail).
The volume can of course be also generated via retail sales (or a combination of retail and personal purchase), and so Forever Living Products operates in the all too familiar grey regulatory area.
That an MLM company
without significant retail activity is a pyramid scheme
is clear-cut. But Forever Living Products, like most MLM companies, does not disclose how much of its company-wide volume is attributable to retail sales.
In a recent compensation plan change email, Forever Living Products shed some rare insight into the current situation.
The gist of the Leadership Bonus change is that affiliates who haven’t qualified for the bonus by qualifying at the Manger rank.
Manager rank qualification requires the generation of 120 cc worth of sales volume every two months.
For reference, one “cc” of volume in the Forever Living Compensation plan is the equivalent of $132 of wholesale personal volume generated by an affiliate and/or their downline.
One of the concerns I pointed out in BehindMLM’s
Forever Living Products review
was that affiliates could sign up, pay $132 a month and eventually max out the compensation plan solely by recruiting other affiliates who also did nothing more than pay $132 a month.
That qualifies you as a Manager and, provided you keep up rank qualification, you earn the Leadership Bonus.
Previously there were no time-restrictions on qualifying for the Leadership Bonus.
Now affiliates must hold the Manager rank for twelve months
before
any downline Managers (and their downlines) count towards their Leadership Bonus.
Any downline Manager affiliates generated within this twelve-month qualification period are
permanently
passed upline to the first Leadership Bonus qualified affiliate.
And yeah, this includes their downline, meaning the qualifying affiliate misses out on the Leadership Bonus for that unilevel leg entirely.
If that sounds like a strange change to make, it’s because Forever Living Products’ top affiliates are feeling gimped out commissions because of “skimming”.
Wondering what skimming is? I’ll let Forever Living Products explain:
Managers who have not qualified for Leadership Bonus for twelve months are not putting forth the effort to build a business worthy of Leadership Bonus.
Many times, when this occurs, the upline will step in to build and support the non-qualified Manager’s downline, only to find that, when that downline becomes significant, the Manager steps in and buys 12CC each month to “skim” the Leadership Bonuses.
Thus, the upline are not fairly compensated for their effort. This will help to curb the practice of “skimming” Leadership Bonuses.
Before we get into the real problem with the above, let me further break down the issue.
Man
🤖 Quick Answer
# Is Forever Living Products encouraging affiliate autoship recruitment?
What is Forever Living Products' Leadership Bonus structure?
The Leadership Bonus compensates affiliates based on sales volume generated across three Manager generations downline. Qualification requires meeting specific sales volume thresholds, which can be entirely fulfilled through personal purchases without generating retail sales to external customers.
How does Forever Living Products address retail sales requirements?
Forever Living Products operates within regulatory grey areas by permitting volume generation through retail sales, personal autoship purchases, or combinations thereof. However, the company does not publicly disclose what percentage of total company volume derives from actual retail transactions versus affiliate self-consumption.
What regulatory concern does this compensation structure raise?
MLM companies demonstrating minimal retail activity typically meet pyramid scheme definitions. Forever Living Products, like most MLM organizations, lacks transparency regarding retail-versus-autoship volume ratios, making independent assessment of business sustainability difficult.
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