Company Spotlight
November 2010
May the Force be with you
PM-International is a force to be reckoned with in the rapidly growing market of health, fitness and beauty. It was recently voted one of Germany’s top 100 innovative companies for the ninth year running, and is also the official supplier of health and fitness products to several well-known sporting associations and top athletes. Features writer MADELINE CLARK caught up with company founder Rolf Sorg to find out more about the company’s history and its products …
Fact FileNumerous clinical studies have been carried out to prove PM-International products do work, says Torsten Weber, Head of Sports Marketing at PM- International. |
When Rolf Sorg discovered the direct selling company he was working for was about to go bankrupt, threatening the livelihoods of 1,000 Distributors, he decided there was only one course of action: he would take over the business himself.
He ploughed all his life’s savings into forming a brand new company, and also took out a massive loan for the same amount.
“I literally went from being a millionaire to being a millionaire in debt overnight,” Rolf recalls. “I knew I was taking a huge risk, but I felt a great responsibility for the 1,000 Distributors who were part of my team at that time.
“My inspiration had always been to help my Distributors become financially independent, but if the company closed down, there was no way I would be able to fulfil that goal. The only solution was for me to set up my own company.”
That was 17 years ago – and it turned out to be the best decision Rolf ever made, as the business has continued to go from strength to strength, year after year.
Rolf continues: “At first we sold the same products as the original company, but very soon began developing new products of our own, with the ultimate goal of becoming world leaders in the growing market of health, fitness and beauty.”
Not long after its launch, the company – previously known as PM-Cosmetics – changed its name to PM-International. Today, it operates in more than 30 countries and has around 120,000 Distributors across Europe, the United States, Canada, Asia and Australia. There are also 74 subsidiaries internationally, 22 of them in Germany.
The company has its headquarters in Luxemburg, but the European Logistics Centre has remained in the Palatinate, Germany, the birth region of its founder. There is also a logistics centre in Singapore.
PM-International has won several prestigious business awards and is now so highly acclaimed that it has become the official supplier of nutritional products to several sporting organisations, including the German and Austrian Skiing Associations, the German Ice Hockey Federation, the Federation of German Cyclists and the German Nordic Walking and Inline Skating Association.
At the heart of its FitLine and BeautyLine products is a unique, Nutrient Transport Concept, which tailors each formula to the needs of the body at the cellular level. “The philosophy of PM-International is based on getting the nutrients the body needs to the billions and trillions of body cells in the fastest possible way,” Rolf explains.
“There is not a single competitor that looks at products the same way as we do. Most producers look at the ingredients. We look first at the body cells and see what they need. Then we look at the fastest way to get the nutrients to those cells. Once we know what we need, the formulation of the product starts.”
He adds: “Our products work from the inside and on the outside and cover all aspects of health and fitness, with the aim of creating a better lifestyle for people. This ties in very closely with our company philosophy to become the market leader, worldwide, of premium products for health, fitness and beauty. It is our products which are at the centre of the company. Our sales strategies are completely tailored around the products.”
Rolf points out that despite embracing all the latest technology, PM-International is very much a recommendation-based business and plans to remain so. “Of course, we are supported by the internet, but the internet is just a tool of the Distributor,” he stresses. “Every sale has to go through a Distributor.”
Yet the company is, nevertheless, determined to keep up with the times. It is in the process of developing a new IT platform, which will also include an e-business internet platform. It has also recently introduced new tools for the iPad and the iPhone.
“The internet, in general, has a growing influence on Europe, and it is a good method of creating business, but we still find that the personal contact is what is important in the end,” Rolf points out. Our products are something you preferably talk to an agent about on a one-to-one basis. For instance, one of our strongest selling factors is getting people to try out our products – but that is, obviously, not possible on the internet.”
European Logistics Centre
As PM-International continues to expand, there are many new developments under way worldwide. The company is currently experiencing massive development and growth in Asia, especially in Japan. In August, PM-International achieved a growth rate of more than 84 per cent in Japan alone, even though August is, traditionally, a slow month. The company is also in the process of expansion into the Ukraine and Turkey.
A brand new range of cosmetic products is, meanwhile, in the pipeline, along with a new series of body care products that will complete the company’s BeautyLine series. “It is an exciting time for the company, as we have recently improved and revamped our unique, Nutrient Transport Concept, and this will be incorporated into all our new products,” Rolf explains. “One thing that is special about PM-International is that we are continually looking at ways of improving our products. A great sales tool is that, with many of our products, you can feel results within minutes.”
For instance, PM-International’s bestselling nutritional supplement, Activize, works by imitating the body’s process of creating energy, promising noticeable results within a quarter of an hour. “The problem with creating energy through stimulants like coffee is that the effect doesn’t last for longer than an hour or two, and then you have to have another cup,” Rolf explains. “Activize contains a vitamin B complex and the plant extract Guarana, which grows in the Amazon region, where it has been used for hundreds of years to provide stamina. If taken regularly, it gives a long-term release of energy. Plus, Activize significantly increases the oxygen supply to cells with a unique ingredient, one of the factors that led to the international patent.”
The company’s second-bestselling product is the Power Cocktail, a nutritious health supplement taken during the day. For night-time, the company offers a nutritional mineral product called Restorate, designed to cleanse and detoxify the body.
Another cosmetic product which also gives instant results is the company’s Duo Lift Finish, which can be used on top of the makeup – for instance, if you are going out to a social event straight from work.
Rolf believes the company’s success in attracting both Distributors and customers has a lot to do with the fact that they are creating premium products that people can actually feel the benefit of almost instantly. But he feels the company’s attractive, long-term pay plan, designed to be both fair and sustainable, has also had a big influence on the company’s success.
“Another key benefit is that we are a family owned company. That means everything is done to make the life of the Distributor easier,” he adds. “This company will never, ever, be sold on the stock market.”
PM-International’s dedication to continually improving not only its products but its working methods is reflected in the fact that, for the ninth year running, it has been voted one of Germany’s top 100 innovative companies. This recognition comes from an independent group of experts, politicians and university professors who give out the awards every year.
World Congress 2010
“These awards show Distributors that we are a good, long-term partner to go with, as well as giving recognition to the quality of our products. We are the only direct selling company in Germany that is among the top 100 companies, something we are extremely proud of,” says Rolf, who was, himself, a finalist for the German Entrepreneur of the Year award.
But the company is passionate about improving the image of the industry as a whole. “In Germany, we are the reputation leader of the industry, and we are very keen to maintain and raise standards,” Rolf says.
“In this area a lot of work still needs to be done,” he continues. “There are people who have opinions about network marketing that have little to do with the truth. This is because there are companies that do not play by the rules and use unethical, unfair methods which do not help the reputation of the industry.”
Rolf is confident PM-International is heading for an even brighter future and will eventually achieve its goal of becoming a world leader in its field. “Our ambition is to achieve 1 billion euros plus in sales worldwide,” he says. “We have no doubt within a couple of years we are going to be number one. There is no question about that.”
Rolf firmly believes the secret of success is all in the mind. “Companies can only become big if the entrepreneurs behind them think them big,” he says. “Success develops in your head.
“One reason we want to become a worldwide leader is because, by doing that, we will be able to influence the lives of so many people, not just in a financial way, but in a way that also helps their wellbeing and lifestyle.”
He adds: “Dr Gerhard Schmitt, Chairman of the Scientific Advisory Board of PM-International, once said that ‘it is not about bringing more age into life; it is about bringing more wellbeing into age,’ and that just about sums up what our goals are all about.”
Rolf concludes: “Our guiding principle is ‘health, fitness and beauty, both internally and externally.’ Our solution is innovative products which noticeably contribute to the goals almost everyone has – to have a more enjoyable and better quality of life, through improved wellness, strength and a healthy appearance.”
