Melaleuca Review: Melaleuca was listed as the number one quickest growing firm on the Inc. 500 list for five straight years. Can the Melaleuca success become a lucrative step in your quest for long term income?
History of Melaleuca
Headquartered in Idaho, USA, Melaleuca officially launched in 1985. The company markets itself as a ” The Wellness Company” promoting a range of personal and home care products. In 25 years of business, Melaleuca has expanded its network to more than 50 countries around the world. A big chunk of its revenues come from Australia, Canada, Hong Kong, Japan, Jamaica, New Zealand, Taiwan, the United Kingdom and the United States. According to the 2009 sales figures, the company grossed over $887 million.
Frank Vandersloot, CEO of Melaleuca, has been listed as one of the wealthiest Americans by Forbes Magazine. Under his visionary leadership, the company has actually achieved 23 years of consistent growth. Mr. Vandersloot’s marketing talents have resulted in millions of Melaleuca members and home business owners around the world.
Products Review
Melaleuca has established itself with several wellness products available at very affordable prices. A key feature of the company I appreciate as that they try to produce earth friendly or “green” products. Initially, all the products of the company used to be made with oil from the Melaleuca tree, which have a variety of medicinal properties. With their market expansion, however, the company has diversified its product line to include:
- Vitality for Life: This brand contains weight loss, personal care and motivation products.
- EcoSense: Melaleuca’s brand for a range of “green” home care products.
- Nicole Miller: Skin care and cosmetic product line from Melaleuca.
Compensation Plan
Distributors of Melaleuca earn profits through commissions on the sales orders from the downline network. This may sound similar to other multi-level marketing companies; however, Melaleuca’s compensation plan is slightly different in the sense it does not promote inventory loading. It means that the distributor is not required to purchase a monthly assortment of Melaleuca products. One slight downside is the network downline is restricted only to the seventh generation. This does not mean you can’t make good money with the company, it simply means the 8th person on a downline leg will not be in your commission reach.
To receive a commission from the monthly sales of your downline, an active distributor has to place an order of over 35 points (average cost of $65). This is based on a single person household so it is very easy to maintain for most people. Active distributors can also earn loyalty bonus points. The company likes to market their products as “replaceable spending” which means stop buying toxic cleaners from your Wal-Mart or Target stores and replace them with the green products of Melaleuca.
Bottom Line on Melaleuca
With Better Business Bureau (BBB) certification, Melaleuca is certainly a huge success story. One can leverage on the success of this solid company for years to come. However, the network growth restrictions (up to the seventh generation) slightly limit the scope of earnings for highly active distributors who build deep organizations. It would be of better benefit to build wide for true Melaleuca wealth. I do think this is one of the better MLM companies in the industry today and it is clearly NOT a scam.
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Good article Jim. I joined Melaleuca about a year ago after a 4 year hiatus from the industry. I too thought the seven gen levels was a drawback. What you left out though was the 30 different income streams, incentive bonuses for training and leadership and the fact that people roll up after someone is inactive for 2 months. The compression aspect separates it from others. No swiss cheese. They made this move several years ago and they were able to hang on to most of their big builders because of it. It was the first time I had seen a company that actually pays you for helping and training people. Even for doing the presentations. Also, the company pays for all local and monthly training meetings. Very positive revue though thanks.
Good stuff Tony…thanks for the good additional data my friend. I strive for complete accuracy in my reviews and welcome input from others. I wish you continued success with a very solid company
Hey there. I’m another Melaleuca business owner checking in here. The review was great, but another thing that was left out was the guaranteed income. People who work and build a great business are rewarded by getting what is much like a pension…a guaranteed residual. Guaranteed. This is one of the reasons why they pay only 7 levels down, though at a certain point in promotion they let you build as wide as you can stand. An organization might be 40 levels deep, but they pay down 7 levels only, enabling the company to give a guaranteed residual to hard workers who don’t want to leave retirement to chance.
I hope this is helpful to people who read. Great review, though, and thanks for being honest and fair. Direct sales is a great vertical to work in, and Melaleuca is pretty amazing to have had the foresight to know that no one wants to build forever. Again…one of the most accurate reviews I have seen so far…
Thanks so much for the great comment….I appreciate it!!
~JW