Melaleuca Wellness Company Review
Owners: Frank L. VanderSloot, CEO
Overall Rank: 2 out of 5 ツ
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NOTE: It is critical for you to know I am not an affiliate of Melaleuca. Rich Artist Starving Artist gives truthful, genuine reviews. My top priority is providing you with quality, entertaining, and informative reviews and I am not influenced by anyone or anything.
If you’ve bought protein shakes, vitamins or other types of wellness products via the internet, then you might have stumbled upon Melaleuca. Founded in 1985, this company offers over 400 different wellness and health products including:
- Weight Loss Products
- Bath And Shower Products
- Energy Drinks
- Household Cleansers
- Essential Oils
- Vitamins, Supplements and Minerals
Melaleuca’s one-of-a-kind value proposition is that their entire product line is organic. So, although their products are pricey, they are better for both you and the planet. Also, it seems that the company tries to collaborate with local suppliers and farmers whenever it’s possible.
When you land on Melaleuca’s website, you can look for products to purchase and even add them to your shopping cart. Prices are not indicated on storefronts or shown inside the shopping cart. When you try to checkout, the website makes you sign up for an account by providing your email address and phone number.
Why do you have to provide your phone number if you’re simply creating a shopping account?
Because your phone number is ultimately used by other members of Melaleuca to get in touch with you and encourage you to become a member of the company.
How do I know this? I had to phone the company so that they could set up my account. In addition to my email address and phone number, they wanted my complete address. Then I was told that it would take 48 to 72 hours for my account to be set up after a Marketing Executive had contacted me. Alternatively, I could deal with a local Melaleuca representative in my area who would create my account.
When I told them that I was merely interested in buying some products off of Melaleuca’s website and checking out their prices, I was given guest access to the following website: melaleuca.com/usguest
What’s great about this guest website is that, while you still cannot buy your products here, at least you can see their actual cost. In order to complete a purchase, you still have to join as a member.
So, why is Melaleuca so determined to have you sign up as a member?
Because they are a multi-level marketing (MLM) company, but Melaleuca would rather call themselves a “referral-based” business.
What Is Melaleuca’s Business Opportunity?
Melaleuca functions both as a referral-based business and a health and wellness product retailer. Members of the company who are not employees, join the company so they can buy its products online and ship them to their homes or businesses. The cost to join is not advertised openly on their website rather like the cost of its products. However, the cost to join currently is $35.
In order to sign up completely, the potential member needs to work together with a present member and join under him or her. As a result, that present member, known now as a Product Advocate, receives a commission every time his or her newly acquired downline member buys a product. The standard commission rate is 7%, which accumulates rapidly provided that the Product Advocate recruits several more members underneath him or her.
Whether you are a Product Advocate or member, you need to acquire a set amount of product points every month in order to stay active and receive commissions. Presently, you need 50 points which converts to approximately $80 worth of product. So, for each month you want to stay with Melaleuca, you need to place an $80 product order.
It’s interesting to note that Melaleuca at no time uses the words multi-level marketing to describe its emphasis on recruitment. Rather, it continually states it is a “referral-based” company. However, if a company extends incentives to its members or contractors to recruit other people into the company, and gives them a commission for doing it, then that is the core of multi-level marketing.
Melaleuca Pros & Cons
Ecologically-friendly, organic products – A lot of Melaleuca’s products are comparable with what you would find at stores such as Trader Joe’s or Whole Foods. The company stresses its products are better for the planet, and it utilizes fair trade practices with suppliers and farmers.
Pricey Products – One could argue that ecologically friendly and organic products are are priced higher than mass-produced products found at the average discount chain or grocery store. However, that is sometimes difficult to justify when buying an $8 glass cleaner or a $10 toilet bowl cleaner.
Automatic Purchases – As a Product Advocate or member, you are enrolled in the company’s product auto-shipping program. You are able to opt out of receiving particular products, but you have to buy something every month or you will be deactivated.
Focus On A Warm Market – The company encourages its Product Advocates and members to approach their warm market (family and friends) as a means of recruitment. This is okay at the beginning, but warm markets ultimately dry up once everybody has purchased products, tried to be recruited or recruited. Consistent sales and promotion in the multi-level marketing ranks is typically achieved by those members reaching beyond their family and friends. Sadly, Melaleuca provides hardly any training in this area.
Mediocre Average Earnings – Melaleuca reveals how much its Product Advocates make as they recruit people into the company and climb the ranks. It’s not a whole lot as you can see in the table below:
A Product Advocate 3’s average yearly income, who has approximately 20 active customers and 6 personal customers, is merely $550. That certainly is not a side income, or barely even enough cash to take a vacation.
The Final Verdict
While Melaleuca offers good quality organic products to its consumers, its commissions are way too small to justify this company as a decent business opportunity. Product Advocates would have to recruit literally dozens upon dozens of personal customers and active customers in the hundreds in order to earn an adequate part-time to full-time income. While it is possible, it also necessitates reaching out to a much wider audience, not just one’s family and friends.
The final disadvantage to this business is its focus on purchasing products every month for demonstration purposes or personal use. This results in Product Advocates stockpiling products in their homes. Even months after leaving Melaleuca, a lot of ex-reps continue to report having stockpiles of product stored in their basements and closets.
Overall, there are higher-paying and better business opportunities available that don’t call for monthly product purchases.
Are you a Product Advocate for Melaleuca? I’d love to hear about your experience with the company. Please leave a comment below.
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