Melaleuca offers products we all use on a day-to-day basis and has a home-based business opportunity attached.
If you are looking to learn What is Melaleuca About, you have come to the right place!
Melaleuca itself claims that it is not an MLM company. Then what it is?
In this article, I am going deep in details about Melaleuca The Wellness company, so that you can make an informed decision whether it’s a worthwhile opportunity or just another scam.
Without further ado, let’s get right into the sweet juice right now!
What You Will Learn Here
- 1 Melaleuca Overview
- 2 What is Melaleuca?
- 3 Who is the Founder?
- 4 What is Melaleuca’s Financial Situation?
- 5 What Are Melaleuca Products?
- 6 How Much Does it Cost to Join Melaleuca?
- 7 How to Make Money With Melaleuca?
- 8 Do They Allow You to Use the Internet to Build Your Business?
- 9 Is Melaleuca Legitimate?
- 10 Can You Make Money With Melaleuca?
- 11 The Good and The Bad
- 12 My Final Opinion About Melaleuca + A Better Alternative
- 13 Melaleuca MLM
- 14 Pros
- 15 Cons
Full Name: Melaleuca The Wellness Company
Type: MLM Business Opportunity
Founder: Frank Vandersloot
Price to Join: $29
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What is Melaleuca?
Based in Idaho Falls, USA, Melaleuca is a multi-level marketing company (often referred as to network marketing or direct selling) in the health and wellness industry.
It manufactures and distributes a wide range of products like nutrition, personal care, home cleaning, and cosmetics.
Melaleuca was founded in 1985 and since then has managed to expand to more than 20 countries worldwide.
Who is the Founder?
Frank Vandersloot is an American entrepreneur, rancher, landowner, public activist, founder, and CEO of Melaleuca.
According to Wikipedia, his private means were estimated at $3,6 billion USD in 2020.
Frank was born in a modest family and raised on a ranch, his father worked as a painter at American Railways.
Frank himself used to work at a laundromat until he finished his studies in business administration.
Frank Vandersloot is also a member of The Church of Jesus Christ of Latter-day Saints (Mormon).
In 1985, he was invited to helm Oil of Melaleuca, Inc. – a start-up multi-level marketing company that, unfortunately, didn’t manage to achieve a significant level of success and soon was shut down.
This as the time when Frank decided to establish his own Melaleuca The Wellness Company.
What is Melaleuca’s Financial Situation?
While the overall financial situation of the MLM company might seem to not affect its distributors directly, still it’s good to take a look at some of the numbers to get an idea of how well the company is performing financially.
I am sure you wouldn’t want to join an MLM company that is going nowhere in terms of its finances, right?
Melaleuca has managed to achieve some fantastic level of success in recent years.
According to BusinessForHome.org, in 2017, it reached $2 million USD in revenue.
In 2019, gross sales of the company constituted $2,1 million USD, the same revenue registered in 2018.
So, in the last two years, they at least didn’t register negative financial indicators, which is showing some sort of stability with the company.
What Are Melaleuca Products?
Let’s check out what products Melaleuca is offering.
Melaleuca’s products are under the following categories:
Nutrition – multivitamins, supplements, products for boosting energy levels, etc.
Beauty – haircare, skincare, fragrances, makeup products
Bath & Body – hand soaps, sanitizers, shampoos, conditioners, shower gel, dental care products, etc.
Household – all sorts of cleaners to use in your home like household cleaners, dishwashing, laundry, cleaning wipes, etc.
Essential Oils – single oils, oil blends, etc.
Medicines – cold, flu, and allergies treatments, dry skin treatments, acne treatments, pain, and fever relief, first aid products, sun care, etc.
They call their products to be environmentally friendly and free of toxins and other bad chemicals.
While I saw a lot of positive reviews about Melaleuca products over the internet, I can’t overlook instances of bad experience some people were unlucky to live with Melaleuca’s products.
Here is a screenshot I have taken from Amazon:
In regard to edible products, as far as I am concerned, in order to keep products 100% natural, you have to consume them right away.
That’s why I am doubtful that Melaleuca’s products are natural cos they have to add something to products to keep them sustainable until you use them up.
How Much Does it Cost to Join Melaleuca?
In order to be able to join Melaleuca, here are the costs involved:
- If you join as a Customer (Preferred or Direct), you’ll need to pay $25 USD to enroll. For this, you’ll get access to Melaleuca products at wholesale prices. This automatically renews on an annual basis for $12 USD. While Direct Customers have no monthly purchase requirements, as a Preferred Customer, you are committed to monthly purchases of a minimum of 35 PP (Product Points).
- If you want to become Melaleuca’s Independent Distributor, your fee is $29 USD. It also includes a complete Melaleuca Membership Kit to help you get started your Independent Melaleuca Business.
How to Make Money With Melaleuca?
It’s important to mention that you can’t resell Melaleuca’s products for profit.
Basically, there are two standard ways to earn with Melaleuca:
1) Earn Commissions from Customers Who Were Enrolled By You (50% of PP on purchases in the Customer’s first month).
Starting with Customer’s second month, you’ll receive a commission on purchases made by all customers you personally enrolled.
The more Active Customers you have, the bigger are your commissions:
2) Earn Commissions from Customers Who Were Enrolled by Others (7% of PP on purchases made by customers enrolled by others in your downline).
Commissions are paid up to 7 generations.
There are different ranks you can achieve if you manage to advance through Melaleuca Compensation Plan: Director, Senior Director, Executive Director, Corporate Director, etc.
There are different bonuses associated with each of the ranks. Just in case you prefer more video-based content, you may wish to watch the video presentation of the Melaleuca Comp Plan:
Do They Allow You to Use the Internet to Build Your Business?
When you join Melaleuca, they’ll offer you your own replicated website to use the power of the internet to build your business.
You can then use your individual links to spread through email, social media, and other channels that are available to you.
Keep in mind though that you are competing with others, probably millions of Melaleuca representatives, who have joined before you and most probably are promoting their own referral links.
Also, I am very doubtful that your website is optimized for SEO so most probably you’ll have to spend thousands of dollars to get eyes on your referral link and hopefully, get people to sign up.
Is Melaleuca Legitimate?
Melaleuca is a member of the Direct Selling Association and it received an A+ BBB Accreditation if that counts something.
So, if you wonder if Melaleuca is a scam, you can rest assured it’s a legitimate business.
Can You Make Money With Melaleuca?
In theory, yes, of course, you can make money with Melaleuca!
The other question is: how much money could you make with them? Enough to pay out your bills, or good enough to quit your boss?
To find an answer to this question, let’s take a look at what other Melaleuca distributors are earning on average.
According to Melaleuca’s Income Disclosure Statement for 2018, the majority of those who buy Melaleuca products (80%) are strictly customers and are not participating in the Melaleuca financial opportunity.
The remaining 20% are Product Advocates (9%) and Business Builders (11%).
Here is how much Product Advocates earned in 2018:
Average, between $115-$564 USD for the entire year, and if we divide it by 12 months, it comes out to be $47 USD per month.
Next, those who managed to achieve a Director rank (89,8%) earned on average $2 101 USD for the entire year. Breaking down to 12 months, this is $175 USD per month.
And finally, we got to the top earners.
Around 2% earned on average $64 607 USD for the entire year, which is $5 383; and less than 1% earned a little over $1 million USD in 2018.
It’s good to bear in mind that this is a business and results may vary but at least now, you have some indicative numbers as of what earnings to expect with Melaleuca business.
The Good and The Bad
#1. Low Start-up Costs
Is 30 bucks a lot to start your own business?
Even if you are not into the business world just yet, you may know that start-up costs in a traditional business (like brick-and-mortar) are huge.
Melaleuca offers an opportunity to start a business for as much as $29 and it’s one of the lowest prices in the MLM industry.
#2. Focus on Sales to Customers Rather Than on Recruitment
To be honest, I was impressed to see that Melaleuca through its Compensation Plan, focuses on sales to customers rather than on the recruitment process into the business opportunity.
Still, you have to refer people to buy Melaleuca products.
#3. A Plethora of Non-toxic Products to Sell
Melaleuca offers products that a lot of folks are using on a daily basis. And they seem to stand out from what we have on the mass market.
All you need to do in order to sell them is to convince people to switch from their local store to Melaleuca.
#1. Beware of Lots Customers Complaints
As of the date of this writing, there are 123 customers complaints submitted to BBB in the last three years. Out of this, 45 were resolved in the last 12 months.
The complaints were referring to billing/collection issues, problems with product or service, as well as advertising/sales, and delivery issues.
Here is a screenshot of one of the complaints:
If you are looking for an MLM company that receives a way lower number of complaints, you may wish to check out Zija International MLM.
#2. Beware of Lawsuit Around Melaleuca
There have been around 5 instances of Melaleuca getting in trouble the ended up by a lawsuit procedure.
For example, in 2012, Melaleuca has placed a restraining order on the two of its members Brian and Angelique Bartholomew to prevent them from recruiting people for another MLM.
So, keep in mind that if you decide to work with Melaleuca, you can’t partner with any other MLM company.
Another big lawsuit was filed by one of Melaleuca’s top earners Terry Dorfman for breach of contract and defamation.
#3. Requires Spending a Ton of Money on Advertising
It’s unlikely that all replicated websites within Melaleuca are optimized for SEO (which is a source of free unlimited traffic).
That’s why most probably you’ll have to spend thousands of dollars to advertise your website and get leads and prospects into your Melaleuca business.
My Final Opinion About Melaleuca + A Better Alternative
Even though the company is thriving, unfortunately, its distributors don’t.
Numbers don’t lie and if you truly like Melaleuca’s products, you could sell them as a side gig but don’t really expect to pay the bills.
If you are interested to learn how you can build your own online business that gets hundreds of visitors a day for free, you may wish to click the red button below:
If You Don’t Want To Waste Anymore Time On MLMs,
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I hope you enjoyed reading this article and now, you are well-versed
If you have any questions, please leave them in the comments down below and I will get back to you as soon as I can!
Stay well and safe, and I’ll talk to you within my next post very soon!