Melaleuca | Detailed Review & Analysis

by Tasos

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Oct 17, 2016

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Welcome to the largest online wellness shopping club… This is what they show when you visit their homepage… continuing… our mission is to enhance the lives of those we touch by helping people reach their goals.

Frank Vandersloot is the CEO of Melaleuca and started the company back in 1985 in Idaho Falls. Since then the company has grown rapidly and now is doing business in over 17 countries and has become one of the largest catalogs and online retailers in North America. A billion-dollar enterprise.

 

So, I guess they are doing something right… do you agree?

 

Melaleuca Review

 

melaleuca-wellness-company

 

 

Offers a full line of world-class wellness products, supplements, nutrients, functional foods and breakthrough innovations that naturally and effectively reduce weight, increase nutrition and advance health.

Additionally, the company is on a mission to improve our environment. They are using non-toxic, home-cleaning products that are safer and let people live without the hazards of harsh chemicals.

 

Less water to make, less fuel to ship, less plastic to package… is the main slogan here.

 

 

melaleuca-wellness-company

 

 

Melaleuca Product Line

 

 

Nutrition

  • Vitamins & supplements
  • Food & weight loss
  • Hot beverages

Medicine Cabinet

  • Dry skin therapy, oils, first aid
  • Sun & acne care, heartburn relief, antifugal

Beauty

  • Skin-care solutions
  • Luxury hair care
  • Treatments & masques
  • Powders

and more…

Household

  • Cleaners (kitchen, bathroom, furniture…)
  • Dish-washing
  • Laundry
  • Home fragnances (wax, air fresheners, soy candles)
  • Pet care (treats, grooming)

Bath & Body

  • Soaps, sanitizers, shaving, perfumes, colognes
  • Shampoo, conditioners, styling aids, treatments
  • Facial care (acne care, cleanser, moisturizers, luxury skin care)
  • Cremes & lotions, bath oils, sun care, foot care
  • Dental care (tooth polish, mouth rinse, breath fresheners, gums, mints)
  • Toothbrushes & accessories

Essential Oils

Single, oil blends, carrier, accessories

 

This is an impressive list if you ask me…

 

 

melaleuca-wellness-company

 

 

Melaleuca Opportunity – Compensation Plan

 

 

Beyond the products, the company offers a vehicle for those who want to start a business on their own in order to create a residual income.

The compensation is based on the sale of products to end customers. However, you don’t have to sell any product yourself, as Melaleuca handles all the selling and shipping directly to the customers.

Your role is to refer customers to shop at Melaleuca and gain commissions whenever these customers purchase products.

 

Business principles

Any manager can effectively manage only a limited number of direct reports. Therefore, a Melaleuca independent business is initially limited to 5 first generation positions. As a marketing executive, you will be authorised to build a marketing organisation consisting of 7 generations of management and customers.

You begin with 5 direct positions on your first business generation. Each of those positions will have 5 first generation positions and so forth. As you develop other leaders within your marketing organisation you can qualify for additional first generation positions.

 

 

Financial Rewards

You are paid commissions when customers in your marketing organisation purchase products from Melaleuca and are calculated based on how many Product Points (PP) each customer purchases in a given month.

Customers enrolled by you

When you enroll a customer, you get 50% of PP on purchases in the customer’s first month.

For the second month, you receive commissions on all purchases by those that you enrolled. It depends on how many of them are active.

Active Customers enrolled by you – Percent you get paid

  • 1 – 7     –    7%
  • 8 – 19   –   14%
  • 20+      –   20%

Customers enrolled by others

You will receive 7% of PP on purchases by customers who were enrolled by others in your marketing organisation. The number of generations your commissions are paid on depends on your commission rate.

  • Product advocates – paid on 2 generations
  • Product advocates II – 3 generations
  • Product advocates III – 4 generations
  • Directors – 7 generations

Leadership points are a measurement of a leader’s contribution towards helping others reach their goals. LP qualify you for certain bonuses and statuses.

 

Obligations – Restrictions

There is a limit on commissions that you receive based on the PP. No commissions are paid on amounts exceeding the 150 PP that a customer purchases each month.

Senior directors and above must attend leadership meetings in order to qualify for bonuses.

Personal production account – Failure to produce revenue of at least 29 PP per month in this account for 2 consecutive months constitutes the marketing executive’s voluntary resignation. You will lose personal enrollees and your marketing organisation.

 

Bonuses

You are paid

  • When you advance in Status
  • When those in your marketing organisation advance
  • As you increase the number of customers in your marketing organisation
  • When you qualify for a monthly car bonus

The bonuses are

  • Advancement
  • Pacesetter
  • Mentoring
  • Core mentoring
  • Double core mentoring
  • Leadership growth
  • Monthly car
  • 20/20

 

Important definitions

Active customer – one who has completed and returned a custom membership agreement and purchases at least 29 PP during the calendar month.

Preferred customer – one who has stipulated in the customer agreement that the customer is committed to purchasing at least 35 PP per month. In addition to many other benefits, preferred customers receive a 30% to 50% discount on Melaleuca products.

Product Point (PP) – a value assigned to each Melaleuca product upon which commissions and bonuses are calculated.

 

To study the compensation plan (financial rewards) of Melaleuca continue here. It is long and it contains the terms and definitions. Melaleuca members can study the whole compensation plan that is not available to non-members.

 

Melaleuca Members

 

 

Melaleuca is not available worldwide so you have to be a resident in any of the following countries.

USA, Canada, Mexico, Australia, New Zealand, United Kingdom, Ireland, Netherlands, Germany, Austria, Poland, Singapore, Malaysia, Japan, Korea, Mainland China, Taiwan, Hong Kong.

 

 

 

melaleuca-wellness-company

 

 

Final Words

 

 

Melaleuca has a solid production line that many companies miss (these days) and their products are recognised and consumed by customers who enjoy them and believe in their value. So, retail sales do play a big role in this company.

The compensation plan is not the typical MLM plan that forces people to recruit others and market the membership. Money is being made when someone purchases products. Of course, you have to refer people to try the Melaleuca products. If they buy, you get paid. But they don’t have to become marketing executives in order for you to sell and get paid.

 

But recruiting or referring or suggesting (or you can call it however you like) is the same model used in all businesses. The main goal of a marketing executive or an independent business owner is to sell.

 

Melaleuca stood the test of time, meaning their products are qualitative enough so that people continue to purchase them for so many years. Not a big percentage of network marketing companies achieved that recognition.

 

There are bonuses for members who are active and manage to sell more and discounts for preferred customers.

On the other hand, there are restrictions and obligations.

 

In order to be successful with Melaleuca you have to be a customer yourself. It will help you reach the necessary PP each month and you can market the products more effectively (having a personal experience).

Before you begin promoting Melaleuca or any other company for that matter, it is essential to test the products yourself. If you enjoy them and you extract real value, then you can go on.

 

Read the full compensation plan to eliminate questions and queries and choose a plan based on your financials.

 

 

Furthermore, if you are a newcomer and have never promoted an MLM or affiliate company, I recommend that you educate yourself first. Because many people get excited with the idea of being an independent business owner and after 1 or 2 months they quit.

Offline recruiting is not enough, you have to take full advantage of the internet. And that can be accomplished with the help of a website and proper marketing training.

Related: Modern Ponzi/Pyramid Business World – There is a Solution!

That’s it, another review has finished, here on Web Market Support. I am waiting for your comments and thoughts. Are you promoting Melaleuca? Till next time.

Tasos Perte Tzortzis

Tasos Perte Tzortzis

Business Organisation & Administration, Marketing Consultant, Creator of the "7 Ideals" Methodology

Although doing traditional business offline since 1992, I fell in love with online marketing in late 2014 and have helped hundreds of brands sell more of their products and services. Founder of WebMarketSupport, Muvimag, Summer Dream.

Reading, arts, science, chess, coffee, tea, swimming, Audi, and family comes first.

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