Has it happened to you too? You know, things like work a few flexible hours, sell the odd few products and earn the occasional dollar. And hey, bingo! That’s about it. Well, it doesn’t work like that. But if we don’t know any different, then we tend to believe what they are saying. Since you like the products and respect them. What’s the next logical thing you do? You join, and it just so happens to be the Melaleuca wellness business. And you’re pinning all you hopes in being a success. With this Melaleuca.com MLM review, we’ll delve into the company explore the products and see if it’s a right fit for you.
Who is Melaleuca?
Melaleuca, the wellness company, more significantly known only as Melaleuca.com. Founded in 1985, By Frank VanderSloot, with headquarters in Idaho Falls and is a privately owned company.
The Melaleuca line of products is expansive, with over 450 lines of wellness and household products. Ranging from essential oils, cosmetics, vitamins . And a variety of household goods among many others.
It’s attested by Melaleuca that the product range is eco-friendly, affordable and that they are all safe for families to use.
Over many years the company has grown into a worldwide organization selling into several countries.
Melaleuca Products Are They Worth The Price?
Whether they are a value for money or not is very tricky to sort out.
In light of the fact there being no pricing available to the general public. It’s impossible to determine if they are overpriced or not. And taking that into account with pricing shrouded by secrecy. Therein remains a mystery. So, whether they are a value for money or not is very tricky to sort out.
The only way of finding their price, is by taking out a monthly membership. That will give you 35 points and will set you back $25+ taxes paid annually.
As the name suggests, Melaleuca Alternifolia, is a native Tea Tree plant from Australia. And a very close relation to the Eucalyptus Tree. Where the oil from both plants is extracted from the leaves and used in many medicinal products, and sensitive products.
Such as, facial cleansers, moisturizers, face soaps and shampoos, to name a few. The cleansing power of the oil contains the most potent ant-bacterial properties. Yet quite safe to be used in many products.
From what I’m able to establish Melaleuca is the flagship company for the distribution of products manufactured from the native Tea Tree.
What Does The Melaleuca Opportunity Offer?
Before moving onto the Melaleuca offer, it’s reasonable to inform you of the understanding of defining the more honest MLM’s and those that are. Well!… not so realistic. Such as Roden & Fields, including many others.
After a little research, I uncovered the following, that relates to all Multi-Level Marketing companies. And issued by the Federal Trade Commission.
“Traditionally, MLM compliance of FTC act analyzes and evaluates MLM’s sustainability that relates to their structured compensation plan. Also, requiring members to pay a fee to that company for the right to sell that company’s products. And whether they have the right to gain a financial return for any recruitment. When recruiting doesn’t relate to the selling of products to end-users”.
Clearly, the wording by the FTC defines a genuine MLM company and those that are Pyramid Scheme.
Now then, that brings me back to the question regarding Melaleuca. Do they place a substantial amount of emphasis on the recruiting aspect of their business? To me, and I’m sure to you too, it looks awfully like they do.
Yet it will be argued, they have no field staff selling to the general public. While that may be true, what they do have in principle, is precisely the same. But, it’s all done online rather than out in the field.
Oddly enough having searched the Melaleuca FAQ section, this is what they say about new customer enrollments.
Enrolling New Customers?
“Consistent enrolments make your organization expand. You’ll secure a Home Conversion Commission on your customers’ first order. Plus a Personal Customer Commission each month after that.
To qualify for the conversion commission, enrollers must shop within the first month”.
What do you make of that? To me, it’s quite evident that they definitely sway toward recruitment being an essential part of the business.
Also, I uncovered another section relating to customer enrollment.
The Benefits Of Enrolling New Customers?
Consistent enrolments make your organization larger. You’ll receive a Home Conversion Commission on your customers’ first order and a Personal Customer Commission each month after that. The customer needs to place an order in the first month for enrollees to qualify for the commission.
I‘m sure you’ll agree, recruitment is the core of the business.
In their favour though. Definitely no mention of having to buy a kit, like most other MLM businesses. But, you do have to pay a monthly fee to remain an active member of the company. Hence the reason why they claim not to be just another one of those MLM businesses.
Those who join the monthly program to buy products are classed as being on the same level. And if you enrol others into the business, you’ll be able to start a downline for yourself. This has some benefits if that is what your long term goal is. Because the more you enrol, the higher up the pecking order you’ll go. Ultimately reaching the level of a “Director”. But there is one little catch to reach that level, you will need to climb nine levels to get there. And that won’t be an easy task.
Take a look at the income statics, and you’ll see what I mean. Melaleuce Income Statics
What Does It Cost To Join Melaleuca?
There are two ways of becoming involved with Melaleuca. Your personal preference will determine which you think suits you best.
Direct Customer Only: When you enrol as a Direct Customer, you have no monthly commitment, and you pay the regular product price with limited access to the Melaleuca Business Centre.
Preferred Member: There is a $25 membership required and is automatically renewed on an annual basis. The fee provides you with the full suite of benefits. One of the advantages of being a preferred member, you’re able to enrol customers and start building a downline. Plus you’ll get full access to over 300 products, 30%–40% off regular product prices. Also, there is a loyalty rewards program where you’re able to purchase FREE products.
The fee entitles you to all benefits by being a Melaleuca Customer. Also, the chance of referring and enrolling customers to build a Business for yourself.
What Happens Being A Preferred Customer?
Being a preferred customer will require lots of learning about the product range. While familiarising and educating yourself about the Melaleuca system.
I suppose if there are any good points. Not having to host house parties or any get-togethers is a distinct advantage.
Are You Able To Earn Money With Melaleuca?
That is a bit of a vexed question. As there is very little information suggesting that you will earn any money with the Melaleuca system. It seems that their main revenue stream comes from customer sales. So, that undoubtedly puts extra pressure on personal sales and recruitment.
Navigating Melaleuca Site
Before we quickly move on. Navigating around the Melaleuca site isn’t easy. (Another turnoff point). However, I was able to muster together this little snippet of information that explains the definition of a “Direct Customer”.
Summarising, Direct Customers: There is no entry fee, but you pay full price for all products. According to Melaleuca statics, the majority of these customers are happy buying products monthly, at total retail price. And therefore, are not interested in pursuing the business opportunity. They represent 81% of the business. And I guess, for those customers especially, there is a sense of contentment knowing that Melaleuca products are not available at any retail outlet. And can only be purchased online. Either through a representative or directly through Melaleuca.
Product Advocates: There are three categories in this level.
Product Advocate 1. Refer at least ONE customer to Melaleuca.
Product Advocate 2. Refers to at least TWO customers to Melaleuca.
Product Advocate 3. Referred at least FOUR customers to Melaleuca.
All three levels receive a small commission for each of the referrals to Melaleuca.
Beginning A Director Business
The early steps of becoming a director are rather steep. According to Melaleuca, they will spend at least 50 hours or more, developing their leadership aspirations to the level of director. In that period, they will have managed to produce at least 8 customers. “YES”, there are strings attached. You must maintain those eight customers to be considered for the director title.
Initial Leadership Status
There are four levels.
Director 3. Referred customers minimum of 11
Director 4. A minimum of 13 customers
Director 6. The minimum of 16 customers
Director 8. And a minimum of 22 customers
You will have reached leadership status by not only investing lots of time. But also inviting several customers to the Melaleuca business. You will have also helped some of those customers start a business and become Marketing Executives. Those Marketing Executives have, in turn, referred additional customers who purchase Melaleuca products each month.
Loyalty Shopping Dollars
Shopping dollars are rewarded to customers who shop month on month. For you to be eligible for the loyalty offer. Product purchases need to attract at least 35 loyalty Points.
However, and like always, there is another little string attached. You will be expected to watch a few short videos and be able to answer a few simple questions relating to the business. Get this. The loyalty program is based for over five months. So it’s just this month, and maybe again in the next couple of months. Sorry, but you won’t qualify. It’s a sweet little dangling carrot to persuade you into joining the business as a marketing executive.
Direct Customers Are Not Required to Buy Membership
Latching on to folks who love the products, but are not at all a bit interested in joining. Is still OK. Because you’ll at least earn a small commission on their purchase. And that all adds up month on month.
First Class Products
The quality of Melaleuca’s products is convincing, considering it is tough to find any complaints. When you come across, people heralding their value. It’s hard to ignore their quality.
Customer Satisfaction Guarantee
Melaleuca ensures the quality of every product with a 100% customer satisfaction guarantee. If for whatever reason you’re not happy with your purchase.
You may return your product/s within 90 days from purchase date, including purchase documentation, for exchange, refund, or a credit on your Melaleuca order. There will be a deduction fee applied for shipping and handling. (Satisfaction guarantee is distinctly different to a Money-Back Guarantee)
Product Autoship To maintain your membership, you are forced into auto-ship to buy products. And each month you will be billed $50. Whether you like it or not, just too bad because there are no IFs or BUTs that encircle auto-shipping.
Membership Cancellation (Be Careful)
Cancelling isn’t as straight forward as you might think. For you to cancel you need to complete and submit a cancellation form. Now Get This!… you’re then required to use snail mail or fax the form. WOW WEE, what century do they live in. Nobody today uses either system as almost everything is done online. But I get their theory behind their reasoning. They already have all your Credit Card details, so they just keep deducting money from that account even though you have already quit.
Should you decide that buying a few products here and there, basically is all your interested in. That’s fine. But do you know what? It’s not possible to buy direct as you must go through a sponsor. Do you know why? Because it gives that sponsor the opportunity of introducing you into the business. Typical HA? A well thought out recruitment scheme if ever there was one. And, remember people in this category represent 81% of their business.
No matter where you search online, there’s no pricing associated with their products. Not even for one single item. I wonder why? Just another convoluted way of forcing you to buy through a sponsor. As Maxwell Smart would say, “Just another one of those shrewd MLM tricks 99”.
Monthly Subscription Cancellation
As I write the post. There are currently, 115 complaints lodged with the Better Business Bureau (BBB), and they are all centred around monthly orders. The bulk of claims seem to focus on the area of monthly order cancellations. Also, many of these complaints were about not being adequately informed when signing up.
Is Melaleuca Scam?
It goes without saying the business and products are shrouded by secrecy. And that begs the question. How legitimate is Melaleuca? If the track record is good as what they claim. Then why some much secrecy? I’m sure that you can see with so much information being hidden from you. Should raise all the RED FLAGS. Another fascinating point made by Melaleuca, who vehemently claim they are not an MLM company. So what are they then? From my reckoning, most of the methods used by Melaleuca are similar, or if not the same as any other MLM business applies. Conceding the fact that there is no startup kit to purchase does slightly move them away from the traditional MLM business principle. But not by much.
Selling products, whether part-time or full time, can be impossible unless you really love the products and are outgoing enough to sell them.
Generally speaking, products are well-liked. But, can you make any money selling them is another story. Look at this way, convincing people to look at a business where all the finer details are kept under wraps. And questions you may ask the enroller will get referred to the Melaleuca.com website. Why is that? Because all the enrollers are told, they mustn’t engage in answering questions.
Melaleuca, like other MLMs, is an enormous risk, given that there is no guarantee you’ll earn any money. And the fact with Melaleuca, many of the details are hidden. Makes it even higher risk. Also, the founder Frank VanderSloot, admits himself it’s a really tough gig. Surely that’s enough to suggest there are better possibilities elsewhere.
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