Melaleuca Review: 400+ products with blurred customer focus
Melaleuca is based out of Idaho and operate in the nutritional supplements, cleaning supplies, and personal-care MLM niches.
Melaleuca was founded all the way back in 1985 by Frank VanderSloot, who today at 70 remains CEO of the company.
According to Forbes, VanderSloot (right) has an estimated net worth of $4.2 billion.
(VanderSloot) is a major landowner — with an estimated 117,500 acres across Idaho, Utah and Montana — and he runs a leading purebred angus cattle operation.
He is also an active political donor, giving millions to Republicans. He was a national finance co-chair for Mitt Romney’s two presidential bids.
Prior to Melaleuca VanderSloot’s relatives ran the MLM company Oil of Melaleuca.
In September 1985, amid FDA investigations into exaggerated medical claims and inventory loading, Melaleuca, VanderSloot’s relatives offered him the company.
By the end of the year Oil of Melaleuca had been shut down and rebooted as Melaleuca.
Since then Melaleuca has mostly had a clear-run with regulators, which is impressive considering the age of the company.
Echoing the 1985 Oil of Melaleuca situation, in 1991 Michigan issued Melaleuca a cease and desist over alleged violations of the state’s anti pyramid scheme laws.
In 1992, Melaleuca signed a consent decree with the states of Michigan and Idaho agreeing to “not engage in the marketing and promotion of an illegal pyramid.”
The Idaho Attorney General took issue with the marketing practices of several of Melaleuca’s affiliates, as opposed to the company’s business model itself.
In 1997 Melaleuca received a warning letter for “false and misleading claims” regarding two of their supplements.
The matter was resolved and since then nothing further has come of it.
By my count it’s been over two decades since Melaleuca’s last regulatory run-in.
That’s not to say the company is in the clear though. Investigations by Truth in Advertising have documented ongoing instances of Melaleuca affiliates making illegal health claims and false and unsubstantiated income claims.
Read on for a full review of the Melaleuca MLM opportunity.
Melaleuca Products
Melaleuca describes itself as ‘the largest online wellness shopping club‘.
There might be something to that claim, with Melaleuca counting an impressive 400+ products in its range.
Every product has been developed and manufactured to stand out from the competition.
Each must be superior in a very clear and relevant way to the products you might otherwise use.
That means they are researched, refined, and scrutinized before they ever go to market.
Specific product categories featured on Melaleuca’s website include nutrition, medicine cabinet, beauty, household, bath & body and essential oils.
Unfortunately Melaleuca’s online catalog and shopping cart isn’t as useful as it could be.
For starters I had trouble finding it off the main Melaleuca website. Eventually I found a link the store buried in the website footer (second link down in the far right column).
Once you’re at the store, you’ll notice some of Melaleuca’s “best sellers” appear to provide retail pricing.
Look close though and you’ll see it’s actually quoted savings.
For whatever reason, Melaleuca fails to provide potential customers with retail pricing on their website.
Not sure why this is, seeing as the company encourages me to add any product I’m viewing to my cart.
Why as a potential retail customer would I commit to buying something when I have no idea what it costs?
The rest of the product information provided is what you’d expect and informative. It’s just let down by the complete lack of provided pricing.
I can only assume this is by design on Melaleuca’s behalf, as the company has certainly been around long enough to know better.
The Melaleuca Compensation Plan
Melaleuca’s compensation plan is primarily geared toward enrollment and retention of customers.
Note that Melaleuca classifies both retail customers and affiliates as customers.
Melaleuca’s expansive compensation plan rewards Melaleuca affiliates with direct and residual commissions. Several performance-based bonuses are also offered.
Melaleuca Affiliate Ranks
There are a whopping forty-nine affiliate ranks within Melaleuca’s compensation plan.
Along with their respective qualification criteria (where provided), they are as follows:
- Product Advocate – enroll and maintain at least one active customer
- Product Advocate II – enroll and maintain at least two active customers
- Product Advocate III – enroll and maintain at least four active customers
- Director – enroll and maintain eight active customers
- Director 2 – enroll and maintain ten active customers and 1000 monthly GV
- Director 3 – enroll and maintain eleven active customers, recruit and maintain at least one Director and generate and maintain at least 2500 monthly GV and 1000 PEG
- Director 4 – enroll and maintain twelve active customers, recruit and maintain at least two Directors and generate and maintain at least 5000 monthly GV and 2500 PEG
- Director 5 – enroll and maintain thirteen active customers, maintain at least two Directors and generate and maintain at least 7500 monthly GV and 5000 PEG
- Director 6 – enroll and maintain fourteen active customers, recruit and maintain at least three Directors and generate and maintain at least 10,000 monthly GV and 7500 PEG
- Director 7 – enroll and maintain fifteen active customers, maintain at least three Directors and generate and maintain at least 12,500 monthly GV and 10,000 PEG
- Director 8 – enroll and maintain sixteen active customers, recruit and maintain at least four Directors and generate and maintain at least 15,000 monthly GV and 12,500 PEG
- Director 9 – enroll and maintain eighteen active customers, maintain at least four Directors and generate and maintain at least 17,500 monthly GV and 15,000 PEG
- Senior Director – enroll and maintain twenty active customers, recruit and maintain at least five Directors and generate and maintain at least 20,000 monthly GV and 17,500 PEG
- Senior Director 2 – maintain twenty active customers, maintain at least five Directors and generate and maintain at least 22,500 monthly GV and 20,000 PEG
- Senior Director 3 – maintain twenty active customers, recruit and maintain at least six Directors and generate and maintain at least 25,000 monthly GV and 22,500 PEG
- Senior Director 4 – maintain twenty active customers, maintain at least six Directors and generate and maintain at least 27,500 monthly GV and 25,000 PEG
- Senior Director 5 – maintain twenty active customers, recruit and maintain at least seven Directors and generate and maintain at least 30,000 monthly GV and 27,500 PEG
- Senior Director 6 – maintain twenty active customers, maintain at least seven Directors and generate and maintain at least 32,500 monthly GV and 30,000 PEG
- Senior Director 7 – maintain twenty active customers, recruit and maintain at least eight Directors and generate and maintain at least 35,000 monthly GV and 32,500 PEG
- Senior Director 8 – maintain twenty active customers, maintain at least eight Directors and generate and maintain at least 40,000 monthly GV and 35,000 PEG
- Senior Director 9 – maintain twenty active customers, recruit and maintain at least nine Directors and generate and maintain at least 45,000 monthly GV and 40,000 PEG
- Executive Director – maintain twenty active customers, recruit and maintain at least ten Directors and generate and maintain at least 50,000 monthly GV and PEG
- Executive Director 2 – maintain twenty active customers, maintain at least ten Directors and generate and maintain at least 60,000 monthly GV and PEG
- Executive Director 3 – maintain twenty active customers, maintain at least ten Directors, recruit and maintain at least one Senior Director and generate and maintain at least 70,000 monthly GV and PEG
- Executive Director 4 – maintain twenty active customers, maintain at least ten Directors and one Senior Director and generate and maintain at least 80,000 monthly GV and PEG
- Executive Director 5- maintain twenty active customers, maintain at least ten Directors, recruit and maintain at least two Senior Directors and generate and maintain at least 90,000 monthly GV and PEG
- Executive Director 6 – maintain twenty active customers, maintain at least ten Directors and two Senior Directors and generate and maintain at least 100,000 monthly GV and PEG
- Executive Director 7 – maintain twenty active customers, maintain at least ten Directors, recruit and maintain at least three Senior Directors and generate and maintain at least 110,000 monthly GV and PEG
- Executive Director 8 – maintain twenty active customers, maintain at least ten Directors and three Senior Directors and generate and maintain at least 120,000 monthly GV and PEG
- Executive Director 9 – maintain twenty active customers, maintain at least ten Directors and three Senior Directors and generate and maintain at least 130,000 monthly GV and PEG
- National Director – maintain twenty active customers, maintain at least ten Directors, recruit and maintain at least four Senior Directors and generate and maintain at least 140,000 monthly GV and PEG
- National Director 2 – maintain twenty active customers, maintain at least ten Directors and four Senior Directors, recruit and maintain at least one Executive Director and generate and maintain at least 150,000 monthly GV and PEG
- National Director 3 – maintain twenty active customers, maintain at least ten Directors, four Senior Directors and one Executive Director and generate and maintain at least 162,500 monthly GV and PEG
- National Director 4 – maintain twenty active customers, maintain at least ten Directors and three Senior Directors, recruit and maintain at least two Executive Directors and generate and maintain at least 175,000 monthly GV and PEG
- National Director 5 – maintain twenty active customers, maintain at least ten Directors, three Senior Directors and two Executive Directors and generate and maintain at least 187,500 monthly GV and PEG
- National Director 6 – maintain twenty active customers, maintain at least ten Directors and two Senior Directors, recruit and maintain at least three Executive Directors and generate and maintain at least 200,000 monthly GV and PEG
- National Director 7 – maintain twenty active customers, maintain at least ten Directors, two Senior Directors and three Executive Directors and generate and maintain at least 212,500 monthly GV and PEG
- National Director 8 – maintain twenty active customers, maintain at least ten Directors and one Senior Director, recruit and maintain at least four Executive Directors and generate and maintain at least 225,000 monthly GV and PEG
- National Director 9 – maintain twenty active customers, maintain at least ten Directors, one Senior Director and four Executive Directors and generate and maintain at least 237,500 monthly GV and PEG
- Corporate Director – maintain twenty active customers, maintain at least ten Directors, recruit and maintain at least five Executive Directors and maintain at least 250,000 monthly GV and PEG
- Corporate Director 2 – maintain twenty active customers, maintain at least ten Directors and five Executive Directors, generate 12 Leadership Credits and maintain at least 300,000 monthly GV and PEG
- Corporate Director 3 – maintain twenty active customers, maintain at least ten Directors and five Executive Directors, generate 15 Leadership Credits and maintain at least 350,000 monthly GV and PEG
- Corporate Director 4 – maintain twenty active customers, maintain at least ten Directors and five Executive Directors, generate 18 Leadership Credits and maintain at least 400,000 monthly GV and PEG
- Corporate Director 5 – maintain twenty active customers, maintain at least ten Directors and five Executive Directors, generate 21 Leadership Credits and maintain at least 450,000 monthly GV and PEG
- Corporate Director 6 – maintain twenty active customers, maintain at least ten Directors and five Executive Directors, generate 24 Leadership Credits and maintain at least 525,000 monthly GV and PEG
- Corporate Director 7 – maintain twenty active customers, maintain at least ten Directors and five Executive Directors, generate 27 Leadership Credits and maintain at least 600,000 monthly GV and PEG
- Corporate Director 8 – maintain twenty active customers, maintain at least ten Directors and five Executive Directors, generate 30 Leadership Credits and maintain at least 700,000 monthly GV and PEG
- Corporate Director 9 – maintain twenty active customers, maintain at least ten Directors and five Executive Directors, generate 33 Leadership Credits and maintain at least 800,000 monthly GV and PEG
- Presidential Director – maintain twenty active customers, maintain at least ten Directors and five Executive Directors, generate 35 Leadership Credits and maintain at least 1,000,000 monthly GV and PEG
PV stands for “Personal Volume” and is sales volume generated by sales to retail customers and an affiliate’s own orders.
Each Melaleuca product has a corresponding PV value. PV is used to calculate commissions and bonuses, as opposed to the dollar amount paid for products.
PEG stands for “Personal Enrollee Group” and is PV generated by personally recruited affiliates only.
An active customer is a retail customer or recruited affiliate who has ordered 29 PV or more worth of product that month.
One additional qualification criteria I’ve left off due to uncertainty are Leadership Points.
Leadership Points are awarded when Melaleuca affiliates help their downline source retail customers or recruited affiliates through presentations.
For each retail customer or recruited affiliate acquired through a product presentation, Melaleuca awards
- 3 points to the affiliate who enrolled the retail customer or recruited affiliate and
- 2 points to the affiliate who did the presentation
An additional point is awarded to the presenting affiliate if the customer purchases a Value or Home Conversion Pack.
Leadership Points are cited in the Melaleuca compensation plan as monthly averages as opposed to hard monthly requirements.
How many months the Leadership Point average is calculated over is not provided.
Finally, while Leadership Credits are cited requirements for Corporate Director 2 and higher, no explanation for what Leadership Credits actually are is provided in Melaleuca’s compensation plan.
Direct Customer Commissions
Melaleuca affiliates receive a 50% commission on any orders placed by retail customers and recruited affiliates within a month of the customer’s first order date.
From the second month onward, retail customer and recruited affiliate orders are paid based on how many active customers a Melaleuca affiliate has:
- 1 to 7 active customers = 7% retail commission rate
- 8 to 19 active customers = 14% retail commission rate
- 20 or more active customers = 20% retail commission rate
Again, Melaleuca classify both retail customers and recruited affiliates as “customers”.
Residual Retail Commissions
Melaleuca pays residual retail commissions via a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
Melaleuca caps payable residual retail commissions at seven unilevel team levels.
How many levels residual retail commissions are earned on is determined by rank:
- Product Advocates receive 7% on two levels
- Product Advocate IIs receive 7% on three levels
- Product Advocate IIIs receive 7% on four levels
- Directors and higher receive 7% on seven levels
Rank also determines how much residual retail commissions a Melaleuca affiliate can earn each month:
- Director – $500
- Director 2 – $375
- Director 3 – 500
- Director 4 – $750
- Director 5 – $1000
- Director 6 – $1250
- Director 7 – $1500
- Director 8 – $1750
- Director 9 – $2000
- Senior Director – $3000
- Senior Director 2 – $3500
- Senior Director 3 – $4000
- Senior Director 4 – $4500
- Senior Director 5 – $5000
- Senior Director 6 – $5500
- Senior Director 7 – $6000
- Senior Director 8 – $6500
- Senior Director 9 – $7000
- Executive Director and higher – no limit
Leadership Bonus
The Leadership Bonus pays out $5 per Leadership Point acquired after the first ten points each month (i.e. from the eleventh Leadership Point onward).
Leadership Growth Bonus
The Leadership Growth Bonus is tied to the generation of at least a 30 Leadership Point average over a rolling three-month average for Senior Director and higher ranked affiliates.
If a 30 Leadership Point average over three months is maintained, the following Leadership Growth Bonuses are paid out:
- Senior Director to Senior Director 9 ranked affiliates receive $500
- Executive Director to Executive Director 9 ranked affiliates receive $2000
- Executive Director to Executive Director 9 ranked for at least five years receive $3000
- National Director and higher ranked affiliates receive $4000
Rank Achievement Bonus
Melaleuca split the Rank Achievement Bonus into a straight Advancement Bonus or Pacesetter Bonus.
Advancement Bonus
The Advancement Bonus option pays a fixed bonus through each of Melaleuca’s forty-nine affiliate ranks.
- Product Advocate to Product Advocate III – not disclosed
- Director – $100
- Director 2 – $200
- Director 3 to 5 – $500
- Director 6 – $600
- Director 7 – $700
- Director 8 – $800
- Director 9 – $1000
- Senior Director – $2000
- Senior Director 2 to Corporate Director 9 – 10% of generated PEG
- Presidential Director – $1,000,000
Note that an additional $100,000 is paid out at the Corporate Director rank.
Pacesetter Bonus
The Pacesetter Bonus pays double the Advancement Bonus, however rank advancement is tied to a specific time-frame.
- Director (within 2 months of signing up) – $200
- Director 2 (within 3 months of signing up) – $400
- Director 3 (within 4 months of signing up) – $1000
- Director 4 (within 5 months of signing up) – $1000
- Director 5 (within 6 months of signing up) – $1000
- Director 6 (within 7 months of signing up) – $1200
- Director 7 (within 8 months of signing up) – $1400
- Director 8 (within 9 months of signing up) – $1600
- Director 9 (within 10 months of signing up) – $2000
- Senior Director (within 12 months of signing up) – $4000
- Senior Director 2 (within 1 month of achieving Senior Director) – 20% of generated PEG
- Senior Director 3 (within 2 months of achieving Senior Director) – 20% of generated PEG
- Senior Director 4 (within 3 months of achieving Senior Director) – 20% of generated PEG
- Senior Director 5 (within 4 months of achieving Senior Director) – 20% of generated PEG
- Senior Director 6 (within 5 months of achieving Senior Director) – 20% of generated PEG
- Senior Director 7 (within 6 months of achieving Senior Director) – 20% of generated PEG
- Senior Director 8 (within 8 months of achieving Senior Director) – 20% of generated PEG
- Senior Director 9 (within 10 months of achieving Senior Director) – 20% of generated PEG
Notes on Rank Advancement Bonuses
Although not explicitly clarified in the Melaleuca compensation plan, I believe the Pacesetter Bonus is offered as an alternative.
After the Senior Director 9 rank only the Advancement Bonus is available.
PEG time-frames aren’t provided, however I believe they correspond to the month a new rank is being qualified for.
For both the Advancement Bonus and Pacesetter Bonus, customer retention rates over a five month period are taken into consideration.
- less than 40% customer retention over the past five months = 50% bonus rate
- 40% to 44.9% customer retention rate over the past five months = 70% bonus rate
- 45% to 49.9% customer retention rate over the past five months = 80% bonus rate
- 50% or higher customer retention rate over the past five months = 100% bonus rate
Retention is calculated based on customer reorders from month to month.
An affiliate has a 12 month grace-period from each rank qualified for in which to earn any lost rank achievement bonus.
Lost bonus amounts can be claimed by
- increasing customer retention to 50% or more in the preceding 12 months a rank is qualified for; and
- having one more active customer over when the rank was first qualified for.
Finally, Director 3 and higher ranks require qualification criteria to be met two months prior to bonus payment.
Mentoring Bonus
The Mentoring Bonus is paid to affiliates who’s personally recruited downline qualify at the Director to Executive Director ranks.
Qualification for the Mentoring Bonus is based on generated Leadership Points (see “Melaleuca Affiliate Ranks” for explanation):
- Director and Director 2 ranked affiliates require a 1 Leadership Point rolling three-month average
- Director 3 to Director 5 ranked affiliates require a 5 Leadership Point rolling three-month average
- Director 6 and higher ranked affiliates require a 10 Leadership Point rolling three-month average
For the Director to Senior Director ranks the Mentoring Bonus paid out is equal to that of the Advancement Bonus.
Senior Director 2 and higher Mentoring Bonuses paid out are as follows:
- Senior Director 2 – $2200
- Senior Director 3 – $2500
- Senior Director 4 – $2700
- Senior Director 5 – $3000
- Senior Director 6 – $3200
- Senior Director 7 – $3500
- Senior Director 8 – $4000
- Senior Director 9 – $4500
- Executive Director – $5000
Core Mentoring Bonus
The Core Mentoring Bonus allows Director and higher ranked affiliates to earn a Mentoring Bonus on affiliates they didn’t recruit.
- Director through Director 9 qualifies for the Core Mentoring Bonus down three levels of recruitment
- Senior Director through Senior Director 9 qualifies for the Core Mentoring Bonus down four levels of recruitment
- Executive Director through Executive Director 9 qualifies for the Core Mentoring Bonus down five levels of recruitment
- National Director through Presidential Director qualifies for the Core Mentoring Bonus down six levels of recruitment
In addition to the above qualification criteria, the following personal recruitment criteria also applies:
- personally recruited affiliate qualifies at Director 2 through Senior Director (excludes Director 3) = Core Mentoring Bonus qualification for two months
- personally recruited Director 3 = Core Mentoring Bonus qualification for five months
The Core Mentoring Bonus begins when downline affiliates achieve the Director rank as follows:
- downline Director rank advancement = $50 Core Mentoring Bonus
- downline Director 2 rank advancement = $100 Core Mentoring Bonus
- downline Director 3 to Director 5 rank advancement = $250 Core Mentoring Bonus
- downline Director 6 rank advancement = $300 Core Mentoring Bonus
- downline Director 7 rank advancement = $350 Core Mentoring Bonus
- downline Director 8 rank advancement = $400 Core Mentoring Bonus
- downline Director 9 rank advancement = $500 Core Mentoring Bonus
- downline Senior Director rank advancement = $1000 Core Mentoring Bonus
- downline Senior Director 2 rank advancement = $1100 Core Mentoring Bonus
- downline Senior Director 3 rank advancement = $1250 Core Mentoring Bonus
- downline Senior Director 4 rank advancement = $1350 Core Mentoring Bonus
- downline Senior Director 5 rank advancement = $1500 Core Mentoring Bonus
- downline Senior Director 6 rank advancement = $1600 Core Mentoring Bonus
- downline Senior Director 7 rank advancement = $1750 Core Mentoring Bonus
- downline Senior Director 8 rank advancement = $2000 Core Mentoring Bonus
- downline Senior Director 9 rank advancement = $2250 Core Mentoring Bonus
- downline Executive Director rank advancement = $2500 Core Mentoring Bonus
If a Director 3 or higher ranked affiliate recruits and maintains a second Director 3 through Senior Director personally recruited affiliate, the above Core Mentoring Bonus amounts are doubled for two months.
Car Bonus
Senior Director and higher ranked Melaleuca affiliates qualify for a monthly Car Bonus:
- Senior Director through Senior Director 9 – $500
- Executive Director through Executive Director 9 – $1000
- National Director through National Director 9 – $1200
- Corporate Director through Presidential Director – $1500
Note that from Executive Director and higher the monthly Car Bonus can be put towards two new cars.
20/20 Bonus
If a Melaleuca affiliate enrolls 20 active customers over their first five months, they qualify for a one-time $500 20/20 Bonus.
Joining Melaleuca
Melaleuca affiliate membership is $29.
Melaleuca’s Independent Marketing Executive Application states there is an additional $30 fee if the affiliate is “also enrolling as a customer”.
The FAQ on the Melaleuca website states that affiliate membership is only $19 if applied for along with preferred customer membership.
Note that the above dollar amounts are annual recurring.
Conclusion
Testament to the length of this review, Melaleuca’s compensation plan is about where you’d expect a thirty-four year old MLM company’s to be.
The plan is long but, to their credit, Melaleuca manage to avoid the confusion pitfall older MLM companies fall into.
That is a compensation plan that has been tacked onto so many times that it resembles an unintelligible mess.
It did take me a while to get through Melaleuca’s compensation plan, but at no point did I feel overwhelmed or confused.
Refreshingly, Melaleuca’s business model is rooted in the acquisition and retention of retail customers, although this can also tilt toward affiliate recruitment too.
The single most pressing issue in Melaleuca’s compensation plan is the lack of differentiation between retail customers and recruited affiliates.
As far as MLM regulation goes there’s an important difference between retail customers and recruited affiliates, and this needs to be better reflected in Melaleuca’s compensation plan.
I couldn’t find anything more recent, but as of 2013 Melaleuca claimed that 62.2 percent of sales were attributable to actual retail customers.
Note that’s sales revenue, which is what we want to see as opposed to raw retail customer affiliate numbers.
Another 23 percent of sales volume is attributed to former distributors, but it isn’t stated whether these distributors can still qualify for commissions.
In any event, with 62.2% of sales revenue being derived from actual retail customers Melaleuca safely avoids pyramid scheme territory.
Again I don’t know what Melaleuca’s current retail sales volume figure is but if it was at 62.2% after thirty-two years of business, I don’t imagine it’s changed too much since.
Melaleuca’s Annual Income Statistics document for 2017 does state 79% of
those who buy Melaleuca products each month are strictly customers.
They’re not interested in pursuing the Melaleuca financial opportunity. They just love Melaleuca products.
But doesn’t categorically state whether any of the quoted 79% are affiliates who haven’t earned commissions.
What you as a prospective Melaleuca affiliate want to do is ask how many customers your potential upline has. Then ask how many of them have signed Melaleuca Independent Marketing Executive applications.
Melaleuca Independent Marketing Executives (affiliates) are customers but under no circumstances are they retail customers. As soon as they have access to the compensation plan they’re business opportunity participants.
This is an important distinction to make. If a Melaleuca affiliate is meeting their required customers for rank qualification primarily on recruited affiliates, as far as MLM regulation goes they’re running their business as a product-based pyramid scheme.
Company-wide Melaleuca might be in the clear with 50%+ retail customer sales revenue, but last thing you want to do is get caught in a Melaleuca downline that is focused on recruitment over retail.
A simple fix for this would be to define a specific number of required retail customers for each rank. I.e. if 20 customers are required, at least twelve of them have to be actual retail customers.
12/20 is 60%, so that ballpark figure should fit within Melaleuca’s stated 62.2% of our sales revenue is from retail customers claim. To be honest I don’t know why Melaleuca hasn’t implemented this already.
On the product side of things Melaleuca operates as a shopping alternative for mostly consumables.
This ties in to the emphasis of repeat orders, which likely make up the majority of month to month sales volume.
Note that most of these customers are probably preferred customers, who pay $19 a year in exchange for a purchase commitment and 30% to 50% discount.
Unfortunately there’s no provided retail pricing on Melaleuca’s website, which means there’s no direct indication of competitive retail pricing.
Melaleuca’s retail customer size does suggest the company is retail competitive, but it’d still be nice to be able to compare.
With Melaleuca’s product-range appearing to exclusive, there doesn’t appear to be any legitimate reason to not provide retail pricing.
With respect to Melaleuca’s compensation plan, it’s been stretched out I imagine due to the length of time some affiliates have been with the company.
I initially balked at forty-nine Melaleuca affiliate ranks, but having gone through them they’re not unreasonably spaced out.
At least one bonus is tied to every rank, so progression throughout the ranks is kept meaningful as far as compensation goes (no “you get a pin!” unnecessary ranks).
One aspect of Melaleuca’s compensation plan that might be challenging is the whole Leadership Points thing.
Leadership Points are acquired through hosting Melaleuca presentations that convert into retail customers.
Average Leadership Points production is tied to rank, so it seems giving presentations is a solid component of building a Melaleuca business.
If you’re not into giving presentations, Melaleuca probably isn’t the company for you.
One thing I’m not entirely sure on is whether Leadership Points awarded any time a retail customer is enrolled (i.e. outside of a presentation).
The Melaleuca compensation plan specifically mentions presentations but I don’t see how the company would police that if it is restricted.
Echoing back to retail customer acquisition and retention, it’s worth noting that retail customers have to place an order to count toward commission qualification. Ditto recruited affiliates.
For the first three months “backup orders” don’t generate commissions. The customer has to manually order products (can be a monthly order).
After three months of ordering a retail customer likely has a sense of what they’re going to continue ordering, after which autoship can kick in. But again, that’s assuming the affiliate is acquiring retail customers and not just recruiting affiliates.
From a business perspective, presentations are a great opportunity for interaction between Melaleuca affiliates and their retail customers – which is key to ongoing retention.
And with retail customer retention an affiliate rank requirement, that’s something all Melaleuca affiliates are going to have to focus on.
At the Senior Director rank for example, twenty customers are required – with the rank maxing out at $36,000 a year in commissions.
Pretty reasonable if you ask me, assuming “customers” is a healthy mix of both retail customers and recruited affiliates.
How much a retail customer or recruited affiliate orders comes into play too, as sales volume over 150 PV isn’t counted:
Commissions are paid on the first 150 PV that a customer purchases each month.
No commissions are paid on amounts exceeding 150 PV.
I can’t say for sure but this appears to be enforced to tackle potential inventory loading.
I believe Melaleuca might actually be one of the first MLM companies I’ve seen actively discourage excessive purchase pressure in the field.
All in all Melaleuca as an MLM opportunity caters to those wanting to earn a bit on a few customers. The compensation plan is also expansive enough to offer depth to anyone wanting to go at it full-time or anywhere in between.
The big question mark is retail pricing but I did see periodic catalogs mentioned in Melaleuca’s marketing material.
It might be worth asking the affiliate you’re in contact with for a catalog so you can compare pricing against what you’re already buying.
They might not be 1:1 comparisons but should be close enough for you to get an idea of what you’ll be paying should you switch.
Oh and obviously be wary of any unsubstantiated health claims made. For the most part Melaleuca’s products appear to be marketed honestly, but Truth in Advertising’s findings shouldn’t be taken lightly.
Good luck!
I’ve purchased Melaleuca’s products every month for 25 years. Some are exceptional, some are so-so, and most all of them are a good, solid value.
Any time I’ve called to place an order or ask for a refund, I’ve been treated with dignity and professionalism.
I built a business 25 years ago, but got distracted by other things. Nonetheless, they still pay me for work I did 25 years ago and I have been paid on time every month for 25 years.
Great company.
I’ve been with the company for the last 6 years and IMO it is the most decent, honorable and customer-oriented company in the entire MLM industry.
Their products are mostly much better than the average ones,they are producing so-called “ecological” grade products, while the prices are kept even lower than the ones you can find in the store around the corner. That makes the company and their products very useful and convenient to use.
The range of the products is very wide, so it is very easy to purchase them month by month, it is always you defenitely running out of something in the end of the month.
There are some outstanding products like vitamin packs and Renew hand care. I give them 5 out 5.
Regarding of their pricing, I can give you few examples.
As you can see from the screenshot attached it is really make sense to be their preferred customer and pay less. NOLINK://http://prntscr.com/m3rn4h
Melaleuca drones already spamming their defensive crap. I would rather give more merit to TINA investigations then to their (drones) brainwashed and biased “experience”.
To be fair nothing stated in the comments thus far has anything to do with what TINA found. Nobody has made income or medical claims.
I can see how Melaleuca is trying their damndest to separate itself from the stigma of a ‘MLM company’. They won’t even use the word ‘Network Marketing’ on their website. Problem is, it’s STILL based on RECRUITING new distributors which they call CUSTOMERS now.
It’s nothing but a ‘wholesale buying club’ just like all other MLMs that count on revenue from distributors who are users of the products. It uses a Uni-level comp plan with very average payouts.
I think they made the levels of their comp plan so ridiculously long to discourage distributors from actually trying to explain it to others, like other MLM companies.
As in all MLMs, the only ones getting rich are the CEOs and the fat cat at the top of the pyramid. 99.9% aren’t even making minimum wage.
The MLM game is played exactly like the casinos in Vegas – Lure them in with hype, and keep ‘em coming back for more. In the end, THE HOUSE is always the winner.
For those who trying to put some dirt on the Melaleuca’s table with no evidences. For 33 years there was no complaints from any supposed “victims”. Nobody lost their money, no one got poisoned by their products either.
Ratio of products quality and prices is much better than you can buy somewhere else. There were few independent 3rd party studies on their products made, proving their quality.
I personally use that for 6 years, another guy mentioned 25 years. That indicates only that products, prices, and quality are descent and satisfactory for their customers.
I feel sorry to see someone who never used and probably never even seen their products trying to say something bad about them anyways. What is that? Hatred? Ignorance?
Interesting.
– finance-guy.net/streetonomic/melaleuca-review-make-money
Classic MLM crap we have seen for decades within the rest of the “industry” like Amway, Herbalie, NuSkin and so on: overpriced junk products with “magical” properties; over-hyped “business opportunity”, idolized by brainwashed followers, who only dream about money and how to reach same heights of those that are “successful”, while ignorant how their own money is fueling the lifestyle of those at the top of the pyramid, that preach to the flock how they work for the best company in the world and have the best products, best business opportunity…
Same old circle jerk just swap company name to any other MLM. There is no difference.
The Melalaeuca compensation plan mentions an “Independent Marketing Executive application”. I don’t believe you need to sign the application to be a retail customer.
But to be a marketing executive you also sign the customer agreement thus counting them as customers. Or am I confused?
And if this is the case, are these counted in that customer percentage?
Exactly. Vemma does this now too I believe.
Let’s count them as customers first because we know most will fail in this flawed model. Clever.
Maybe initially, but I don’t think you’re counted as a retail customer for the purpose of compensation qualification.
Anyone who has signed the Independent Marketing Executive application is obviously not a retail customer, regardless of whether they’ve recruited or not.
According to the 2016-2017 Income Disclosure Statement 79% are retail customers (no agreement signed):
There might be a grey area with Product Advocates, who earn a commission but haven’t signed an Independent Marketing Executive application. On the flipside Product Advocates rank requirements are enrolling retail customers, so that’s all they’re getting paid on.
I suppose one could ask their potential Melaleuca upline if they have reached Director or not. If so, then how many of their eight required customers are Product Advocates vs. true retail customers.
Hi, since I am a Melaleuca customer and executive since 2013, I can clarify some of the points for you guys.
@AntiMLM. Their products are cheaper in most cases than the ones sold in the nearest grocery, while the quality is the same as an “ecological” grade products.
They do not use many commonly used dangerous chemicals like chlorine, ammonia, parabens, etc. Speaking of business opportunity, only 21% doing something in this direction, most are strictly preferred customers only.
No one promises you to become reach overnight. Nevertheless there are many who really doing exceptionally well. There are successful executives at any level, not only in the top, as you’re trying to describe.
You do not have to buy overpriced products, store them at home and never use. More over, Melaleuca restricts personal consuming level to 140 points a month and they will never compensate you for overhead. Company also strictly forbids any reselling.
@Char, the difference between the customer and executive is only in one more form filled out, no any additional fees imposed.
@Oz, the regular enrollment fee is $19 per year, not $29. Some months, like this one, the enrollment is only $1 at all. For the proposes of compensation qualification everyone is counted as a customer, because, everyone IS a customer , really.
If the person haven’t signed an Independent Marketing Executive application he/she cannot earn any commission at all.
Thanks for clarifying that. I’m going to have to edit the review and add an update.
There’s a big difference between requiring retail customers and counting everyone as a customer.
OK I’ve revised the review (including title).
Simple fix is specifying a set amount of actual retail customers. To avoid confusion, calling everyone “customers” has to go too.
I get the reason but from a regulation standpoint it comes off as intentionally misleading.
‘Buy from yourself, teach others to do the same’.
I fail to see how Melaleuca is any different, and is, in fact, manipulating the numbers.
Anyway, why would an MLM company want retail customers? They are a dead end for them. It’s an inherent flaw in every MLM company. A retail customer is merely a consolation.
Char: I fail to see how Melaleuca is any different
Melaleuca in fact is a wholesale customer club. People buy those products anyway every month for their personal use. Obviously, it make sense to buy the better quality product and pay less than anywhere else. Every customer matters because it brings commission for those who active as an executive.
From my own experience, I fail to buy only minimum points required, and usually I buy for 40-45 product points. Why? Because that is what I need for may family use.
Next month something else is running out of stock, so it is always something required to be ordered.
@Char
Right with you if they are, but they categorically stated retail customers in their 2013 statement.
That said it’d be great if the 2017-2018 income statement updated the retail revenue percentage.
@Michael
What Char is getting at is that in MLM a wholesale club is a pyramid scheme if the majority of company-wide revenue is sourced from affiliates.
At the end of the day it doesn’t matter what you call yourself. If you’re running a multi-level comp plan and company-wide are sourcing most of your revenue from income opportunity participants over retail customers, you’re running a pyramid scheme.
The latest 2016-2017 income statement confirms the same 79% of customers number. And this number stays the same for many years. There is nothing to do with the pyramid scheme.
cdnus.melaleuca.com/PDF/BusinessCenter/enus/incomestats-enus.pdf
Mela is very similar to a Costco or Sams Club type membership that ships to your front door like Amazon (Ozedit: snip, see below.)
Neither Costco, Sams Club or Amazon offer an attached MLM income opportunity so no, Melaleuca is not remotely similar to those businesses.
I nuked the rest of your comment because it was based on a flawed premise.
Which is why nobody buys from MLMs in the long term unless they are an affiliate, or friends and family of an affiliate (“pity sales”).
All MLM products, without exception, are higher cost than non-MLM products of the same price because of the multiple commissions that are baked into the price. Or they are lower quality than non-MLM products of the same price.
While it is possible to dupe a few people into paying over the odds in the short term, in the long term demand collapses to zero.
@Malthusian. If you’re talking about, say, Amway then you’re right – their prices are ridiculously high. And that’s different with Melaleuca products. One of the key-points of Melaleuca’s prices policy is their low price and high quality.
Melaleuca keeps their prices on the same level as a regular store around the corner, while quality is either exceptional or at least much better.
As a support of my words, see the comment #1 in this topic. The man is buying their products for 25 years(!) and he does NOT build business with them! I’m also buying their products for 6 years and would continue to buy even if didn’t get any commission either, just because of their quality.
Another support is the price comparison table of few Melaleuca’s and cheep non-Melaleuca products you can see here: prntscr.com/m3rn4h
And one more proof. Even though Melaleuca strictly forbid to resell their products, it is possible to find them on Ebay and Amazon. If you compare, you will see that products are re-sold with double or triple price in comparison to the original one.
Malthusian, can you give any examples of the prices proving the opposite?
Comment #1 is not a retail customer. See below.
Regarding good value, I assume you mean your “wholesale” price. Is this only offered if you buy every month to stay active?
According to the link, Melaleuca window cleaner, at the preferred member price, makes 96oz. for $5.69.
It’s not, but since you brought it up:
Sam’s OdoBan CONCENTRATED glass cleaner –
Non-streaking, non-ammoniated, VOC-free formula
Green Seal GS-37 certified
Certified by the US EPA’s Safer Choice program
Currently on sale for $6.46 gallon ($9.24 gallon regular price)
Makes 128 quarts – 32 ozs per quart = 4,096 ounces
Melaleuca $5.69 makes 96 ozs
Sams $6.46 makes 4,096 ozs
That’s four THOUSAND less LESS ounces with the Melaleuca product. You were saying….
If one is so environmentally conscious, you could have ONE one gallon container versus 42 Melaleuca containers for nearly the same price and no commitment to buy stuff every month. Just saying.
Or as Malthusian was saying:
Well said!
@Char
Everyone in Melaleuca IS a customer, no exclusions. About 97% of customers buying every month, and that is what makes them preferred customers and brings them discount of 40-50% and many other perks.
Anticipating your next post – they buy those products because they need them for their households, not because they forced to buy. Otherwise, they would buy them somewhere else and pay more.
They do not store anything for the sake of buying. They don’t chase the bonuses – most of those who buying every month just the customers, they never tried to invite others.
They simply value the quality of Melaleuca’s products and prefer to buy them from the company. That is why people stay with the company for many years
Because they have a magic money tree and the multiple commissions are paid by fairies and not the end consumer. Sure.
$17 for c. 4.25 litres of laundry detergent? LMAO. I can get that in Aldi for about two thirds that price. And that’s without buying a bulk container. But I’m not helping out my struggling friend with his “small business”.
And that’s $17 with a 50% discount?
Correct me if I’m wrong, but in order to get the supposed good value, you must buy each month or they will send you a “back up” order. You must buy every month. How is that not forced?
Btw, “need” is very subjective.
Being an outsider you see this as a “forced”, while those who are inside, know what are the products quality and what they can be used for (its almost 500 of them in the company), so it is very common when they buy much more than required minimum.
Why would they do that if it is “forced”? And I am talking about the regular customers here, not executives.
From my own experience, I usually consume 40-45 points monthly with the minimal requirements of 29-35 points only. And nothing goes to the closet!
I just HAVE to pipe in here. I have been a customer for 6 years and that is only because I see better value shopping at Melaleuca than going to local stores. Unless Melaleuca goes out of business, I will continue to shop at their store.
Melaleuca is simply a shopping club that is set up in such a way that they offer better value than local stores. Some have claimed that Melaleuca products are expensive and even present comparisons as proof.
Although price is important, so is quality. Could I go to the Dollar Store and find a less costly product? Sometimes. However, the quality of Melaleuca’s would be vastly higher.
So why would I want to poison my family with a Dollar Store made in China brand and maybe save a few cents?
Does Melaleuca “force” people to shop monthly? Absolutely not. Customers can put their account on hold as often as desired with no penalty for doing so. No “backup order” will be shipped if the account is on hold.
A persona can also just buy a tube of toothpaste and nothing else if they don’t mind losing out on the discount obtained for reach the discount threshold of 35 points of product, which is really easy to do.
My family regularly goes through 50 – 100 points of product. Why? Because we need the items. If Melaleuca did not exist, those items would have been bought at some local store, for likely more money too.
There are so many inaccurate statements made about Melaleuca by either those who actually don’t know what they are talking about, or by those who think they do.
(Ozedit: unsubstantiated claims removed)
More and more people are discovering that they can not afford NOT to shop at Melaleuca when it comes to taking care of their health and obtaining high quality products at very reasonable prices.
A retail customer or are you an affiliate?
Actually it’s an MLM opportunity. Something like Costco is a shopping club.
It seems my post had a section removed due to “unsubstantiated claims”. It doesn’t take much effort to search for things like, “melaleuca scam”, “is melaleuca legit”, “melaleuca business opportunity”, etc., and the results will ALL be from people trying to pitch THEIR business. (Ozedit: snip, see below.)
Who am I? A person who simply loves to shop at the store. Like most people, I have no interest in the business.
In regards to the MLM topic, a very good read can be found here: (Ozedit: marketing spam removed).
What does that have to do with this review?
So why on the website domain of the email address you’re using to comment are you marketing Melaleuca’s “business opportunity”?
I can appreciate your enthusiasm for Melaleuca’s products and there’s nothing wrong with that. But why be deceptive over your participation in Melaleuca’s MLM opportunity as a promoting affiliate?
And finally please don’t lazy link to marketing spam. If you want to address something specifically then do so.
I find it most interesting that Melaleuca goes out of its way to prove it is NOT an MLM company. I wonder, what is the reason for this disassociation?
And no one orders through upline anymore and picks up from upline’s garage. 80’s much?
I also wonder if Janice was referred by someone who was referred by someone, or did she just call Melaleuca Co. and is not connected to anyone who profits off her?
From her link. I think Dale Dixon IS living in the 80’s. WTF is he talking about?
‘Dixon notes that “Melaleuca does not have multiple levels of distribution, which means its independent agents do not distribute inventory from one agent to the next. He added that “incentive-based sales approaches are common across nearly all industries, and a compensation model should not be what ultimately defines a company as a multi-level marketer.’
Btw, here’s how to order from Amway:
‘When you are ready to purchase, click Checkout. Enter your preferred shipping address and delivery method, and shipping charges for this order will appear.’
Dixon’s clearly full of shit.
I didn’t actually read the spam on the website. Saw the big “give us your email address” thing pop up and immediately closed the tab.
Color me stupid, but this quote sounds like a confession.
idahofallsmagazine.com/2014/12/demystifying-melaleuca
I smell a big fat rat convincing local politicians and the public they are not MLM (not a pyramid scheme) using double talk. And money?
I simply wanted to add to the conversation that there is an available website that allows individuals to view the products and see pricing. Prices as a club member are very competative in fact suprisingly so. Simply go to melaleuca.com/usguest to view the site and its offering.
In addition the plan is the only home business plan that i have seen that is even close to being FTC compliant. They dont allow the loading of products to fuel a compensation plan and are heavily weighted in the aquisition of REAL CUSTOMERS. 80%+ of Mela club members are just customers.
On more thing i’ll add. Mela produces great products backed by actual science. Youtube the “Peak Performace Pack” for example. You will see the studies.
Wish you all the best.. members and skeptics alike. Cheers.
Recent FTC litigation has focused on retail customers.
Retail customers in an MLM company have no access to the comp plan, period. Affiliates are affiliates, regardless of whether they’ve earned anything and/or recruited anyone.
If Melaleuca want to continue to group affiliates and retail customers together as “customers” they run the same risk as Vemma and Herbalife.
Anyway you slice it there is a lot of people making a lot of money in Melaleuca and that is probably why Frank vandersloot is one of the wealthiest persons in the state of Idaho.
(attitude of gratitude)
“A lot of people making money” should never be an MLM due-diligence factor on its own. How people make money in an MLM company matters.
I had a reader contact me requesting a review of “Cowboy Wealth”, run by Chris and Cathy Sorensen.
Cowboy Wealth is what the Sorensen’s call their Melaleuca downline. This means our Melaleuca review above applies.
Leaving this here in case anyone else is looking up info on Cowboy Wealth or the Sorensens.
I just called out a Mela peddlar of lies (lies from company NOT person) in a FB group – do not think the person had realised they were lies.
So is this indoctrination?
(asking for a friend) :o)
Most of the time A marketing executive will ask someone who wants to be a customer only to just sign the marketing agreement anyway.
The Marketing executive can enroll customers and place them under that customer so they can earn a small check.
The customer has no desire to build the business at all and just sign the paperwork because there is no extra cost to do so.
I have personally told people to do this many times.
Marketing Executives aren’t retail customers, irrespective of whether they “build the business” or not. The Vemma and Herbalife FTC lawsuits cleared this up.
An MLM company that generates the majority of revenue via affiliate purchases is operating as a pyramid scheme.
Sounds very much like you’re operating your Melaleuca business as a pyramid scheme.
I have been a customer of Melaleuca for 3 years and never really attempted at all to share it.
This is mostly because I am in other businesses and Melaleuca is very clear on the fact that if you really start having success with them they “own” you. You can’t be building other businesses at the same time. I have heard lots of horror stories on this.
Now…is that a bad thing? Probably not at the end of the day. They CLEARLY know what they are doing and what works in the long run.
The thing that impresses me the most about Melaleuca is they don’t hype and they truly competitive on their pricing. The fact that their initial home conversion kit translates to around 6 dollars a product is unheard of and clearly a loss leader.
Every month I gladly place an order with them because of the VALUE and quality of the products. The fact that they have the videos you can watch to earn loyalty dollars even as a customer is brilliant as well.
Most if not all Product based MLMs that I am aware of have expensive products that is where this company separates in my opinion. I just wish they would lighten up on some restrictions and not require live presentations for a concept that really is a no brainer.
so if someone signs a marketing agreement even though they have no DESIRE at all , key word DESIRE then you still count them as an affiliate because they signed a form that their enroller told them to sign?
Yep. People who aren’t interested in the business opportunity shouldn’t be signing up as affiliates. It’s a pyramid scheme loophole otherwise.
The onus is on the MLM company to have a wholesale customer class for these customers. If they don’t that’s their problem and they are running a pyramid scheme. No excuses.
Hi, I was looking up a different company that someone is trying to recruit me into, and out of curiosity, I wanted to see what this site says about Melaleuca. I’ve been a customer, who also has a marketing executive agreement, for 12 years.
I just want to say, I find it very amusing seeing so many people on the outside who don’t know the company or products at all, trying to dissect it and find something wrong with the company.
I honestly would be willing to bet you that if you gave the company a chance, you would be very happy with the products and even with the business opportunity, if you are accustomed to network marketing.
Although Melaleuca does call it consumer direct marketing, not network marketing, and they do seek to separate themselves from MLMs, due to the negative associations with MLMs.
I think from the primary review’s remarks, it’s clear that they’ve done a pretty good job. I can’t answer to the specifics of the laws versus Melaleuca’s business structure, but correct me if I’m wrong, it’s pretty hard for any of you, including the original author, to find something wrong with it, right?
And some of the comments are simply conjecture. As was stated, given their long history with so little negative to find, that’s a pretty good record and reputation! Is it so hard to believe that it’s a good company?
There are many things I could say that I love about the company and the CEO and his vision, but you’ll probably just call me a brainwashed affiliate, or whatever. I just want to add a tiny bit…
I will admit that I don’t actively build the business anymore because I just didn’t feel comfortable doing so, it doesn’t come natural to me, everyone assumes pyramid scheme, and you get tired of trying to explain why it’s not. But I’m 100% a customer for life, and I do refer and enroll customers here and there when there is a genuine interest from anyone. But I can tell you during my time actively business building, I did many cost comparisons overtime, comparing a variety of Melaleuca’s products to store brands, including the “green” or safer brands too.
I always found an overall cost savings, even including shipping. There may be some products here and there that might be a little bit more (though not by much), but you really need to look at a comparison across the board, not just one item. (By the way, I’m a single mom of 1 child and I routinely purchase around 50 product points a month that we actually need and use! The agreed amount is 35 points.)
As has been pointed out, you are only buying household products you need anyway. You wouldn’t be shopping with them for just one item. So it’s appropriate to compare a normal group of items you would be purchasing anyway. Add to that, their quality and effectiveness is outstanding, while also being safer, lacking many harmful chemicals.
Many many people swear by their products and are customers for life, just like myself. When I became a customer, their customer retention rate, month to month, was 95% and I believe had been for quite awhile. In the last 5 years or so, it’s increased to 97%. Is it just me or is that unheard of? Especially in MLMs.
For that purpose, there doesn’t need to be a differentiation between customer or marketing executive. All are included in commissions, and all are included in the 97%.
Also worth noting that many months, they sell the membership fee for $1 instead of the $19. Someone said something about a separate amount listed in the marketing executive contract. I would have to look again since it’s been awhile, but I don’t recall that, and it is not something that came up recently with some people I enrolled.
There is no additional or separate fee for marketing executives. The membership fee is what it is for everyone, whether just a customer or also a marketing executive. Perhaps there is something in the fine print to legally differentiate, but what people are charged is no different.
I’ve said it already but I’ll say it again, yes the products really are that good and worth it, even in the longrun which seems to be hard to believe for some. But if you don’t want to take my word for it, it’s your loss.
But if you don’t care what products you use too, then that could also be why it makes a difference to you.
As was pointed out, sure you can get something cheaper from the Dollar Store. That is incredibly toxic, cheap crap.
Many of Melaleuca’s customers value the fact the products are safer for you and safer for the environment, especially when it is now proven (not by Melaleuca, independent studies published last year in the media) that using national brand cleaners just once a week is as toxic to you as smoking a pack a day of cigarettes. That makes a significant difference for many.
I have seen other negative remarks on other sites, that I can tell you all have easy explanations. Usually they were not informed correctly by the marketing executive who enrolled them, or they did not contact the company to resolve the issue.
Hands down, I have never found another company with better customer service. They truly live the saying about making the customer happy.
Everything is 100% money back guarantee, within 2-3 months, I can’t remember the exact. You can literally use an entire product and if you don’t like it, they will refund you or credit you, whichever you prefer.
Certain products that cannot be returned like cosmetics and skin care, if you don’t like it, they’ll let you keep it and they’ll still refund you.
I literally just did this last week, because I didn’t like the first nighttime moisturizer I picked out, so they recommended me a different one and only charged me the difference. They do not want me to return the other one and said I can do whatever I want with it!
I’ll either use it anyway or give it to my daughter. I’ve had many examples of their excellent customer service over the years. It’s unparalleled.
Oh I also wanted to clear up the issue with the website showing pricing and the presentations… as was pointed out, there is a website that does show the prices. But the reason why they do that and insist on the presentation is because the company values building relationships and person to person contact.
They don’t want marketing executives just sending people videos to watch and having virtually no communication with them. This is how people get bad information that upsets them or missing information that would benefit them greatly, such as the loyalty shopping dollars.
$100 in free products the first 6 months and a certain percentage from every purchase after that. So as I was saying, they put the focus on relationship building and want communication.
I think one version of the site doesn’t have prices so that people don’t just look that up and lose the heart of the company and so much more important information as well.
It was also explained to me recently that they try to make sure that new customers get enrolled with the actual person who referred them, rather then going to the website and getting setup through some random person.
I can’t remember what else I wanted to address, if anything. And it’s not worth it to me to read back to find anything.
All I’ll say it like I started, some of you can try really hard to look for something negative to say, but sometimes a company is a good one! And many many people do very well with the business opportunity too.
And since the company was started, it has increased its revenue every single year except for maybe 1 or 2, and is now earning 2 billion annually, with over 1 million shoppers every month.
Those are pretty good numbers backing them up too for a type of network marketing. I encourage you to give them a chance! You’ll likely be happy with what you find.
I have been a customer for 20 yrs. I agree with your opinion and belief In the company and its products.
I take the peak performance pack Total. It gives me the energy I need To work 7 days a week.
one last thing For the skeptics, Melaleuca has been in business 35 yrs. If they had bad business practices they would’nt still be in business.
Have a good day.
If Melaleuca’s products are working for you, then great. The above however is a rehash of the “but if it was illegal it would have been shut down!” argument.
Not being shut down != legitimate MLM company.
I don’t understand why Melaleuca is repeatedly called an MLM here with suggestion that it is also a pyramid scheme.
An MLM relies on distributors buying inventory and reselling for a profit. There are no distributors in Melaleuca.
Reselling the product for a profit is forbidden and if discovered, membership will be revoked. Everyone buys directly from the manufacturer, so a first time customer pays the same price for a tube of toothpaste as an Executive Director.
It’s also not a pyramid scheme, which is illegal. In a pyramid, participants sell memberships where no real product is sold, with the promise that profits will be made if the new member sells more memberships, again with no product exchanged.
This profit design quickly implodes because the downline population becomes so massive that new members are difficult to find. Those at the top have made their fortune while those at the bottom become casualties.
Quoted verbatim from the review:
Moving on…
Calling MLM distributors “members” doesn’t make them any less distrubutors.
That’s one type of pyramid scheme. Another is the product-based pyramid scheme.
If the majority of Melaleuca’s company-wide sales revenue is derived from affiliate/distributor/member purchases, i.e. those who have access to the comp plan, then it’s operating as a pyramid scheme.
Doesn’t matter if an affiliate/distributor/member has recruited or not. That’s no longer a ruse pyramid schemes can hide behind (see FTC v. Herbalife, FTC v. Vemma).
Sounds like you’ve got some research to do. Put down the marketing material and get out of the Facebook groups.
Members are not distributing any product; all purchases are made directly with the manufacturer. Directors don’t even know what products their associates are purchasing.
My Facebook groups are largely gardening and travel. Not seeing the connection here.
Nobody said they were. Signing up for an MLM opportunity makes you a Distributor. This is the industry standard term and is interchangeable with “affiliate”.
On BehindMLM I typically refer to MLM distributors as “affiliates”. You can call them “members”, tooth fairies or anything else your heart desires.
And?
Is it your understanding that an MLM can exist where there is no reselling of the product for profit and that one can be a distributor without distributing?
I mentioned “Directors don’t even know what products their associates are purchasing.” because they would need to know in order to distribute/resell the products to them.
And yes you may call associates ‘tooth fairies’ (cute!) if you like.
If you signed up for an MLM opportunity you’re a distributor.
MLM comp plan = MLM company.
Stop wasting my time.
Not since the invention of the computer. People stop using a pad and paper to track downline sales decades ago.
Your are an interesting character and I will leave your chain as you wish. Sincerely trying to understand your perspective.
My perspective is Melaleuca is an MLM company with distributors that markets 400+ products and has a blurred customer focus.
You’d know this if you bothered to read the review.
Nothing sincere about acting obtuse about the basics of MLMs.
When Singapore opened with no quarantine restrictions on movement, I received an invitation from a few friends to visit Melaleuca.
I can imagine how difficult it is to get people to become retail customers when almost everyone becomes a retail customer, customer or distributor.
I bought Melaeuka products as a friend. I didn’t become a member because I didn’t want to pay an additional membership fee for a one-time purchase.
Just like other types of business, competition and saturation will be a keyword in MLM, but it’s more obvious in MLM. The people who can recruit and the people who can recruit will be the ones who can actually make money.
Worse so because you are motivated to recruit your and your recruits’ competition.
I have been a customer for years. The products are reasonably priced. The products work. The compensation is fair and equitable.
MLM = Distributors who buy from a company and resell to their customers.
Melaleuca does not do this and (Ozedit: snip, see below)
MLM = MLM comp plan.
Please don’t come on here with marketing bullshit. Thanks.
Oz….why don’t you give Melaleuca a try rather than bash a sompany you truly know nothing about. Melaleuca has independent research done on their products. Melaleuca helps people achieve success.
Insurance companies work on a multi-level marketing system. Yet that seems to be ok with the world.
If you don’t like MLM, then move on and leave the rest of us to our business.
Lol, no, stop scamming people.
And no,”insurance companies” don’t. MLMs do. They might sell insurance, but they’re an MLM then.
Maleleuca’s corporate training tries to teach the “if you tell people we aren’t mlm, they’ll buy from us”.
“We’re just creating shopping accounts.”
No you’re not. Look at the comp plan. You have binary and other structures in your plan that reward you for recruitement and sales at multiple levels. You are an MLM.
Because you don’t need to try an MLM opportunity to conduct due-diligence on one as an income opportunity.
Whether insurance companies do or don’t run MLM compensation plans is irrelevant to performing due-diligence into Melaleuca.
If you have to make up premises to build arguments around, you’ve already lost the discussion.
As a long time customer of Melaleuca, I would encourage all of you who are criticizing the business model, to learn about the company and the comp plan.
There are many inaccuracies within this thread. I’m sure some of you would prefer sharing correct information instead of assumptions or info given to you by someone else who didn’t know what they were talking about. Please don’t take offense.
You’re a Melaleuca promoter Stephanie. At least be honest about the fundamentals of your involvement.
Which is why you failed to point out even one. Thanks for stopping by.
This company is 100% a CULT! I was there for 4 years. I do NOT think other mlms are but Mela is.
There is NO Difference between Agents and Customers. Everyone is considered a CUSTOMER by them. Not sure if they changed anything but even CUSTOMERS can get checks.
I did NOT have to sign a marketing agreement until I made several $1000. If you do not order for 2 months they no longer count u as a customer to keep there retention STATS high. All customers are 100% BOUND by their terms and conditions
They have sued more CUSTOMERS and REPS than any other company in the industry. And they have ALL Lawyers in Idaho on retainer. So to fight them you must FLY in, Feed and provide a hotel for your own lawyer. HAHA $$$$$$$ Good Luck.
Products are somewhat decent though. I mean as decent as dish soap and candles can be I guess.
“Customers” has become a meaningless term with respect to MLM due-diligence.
Retail customers is what matters. I doubt Melaleuca has more retail customers than customers attached to its income opportunity.