Is Melaleuca a scam? Are the products any good and can people really make great money by joining their multi level marketing business opportunity?
Let’s take a closer look and find out…
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Company Name: Melaleuca
Founder: Frank L. VanderSloot
Price To Join: Free to join
My Rating: 3.5/10
~ The Melaleuca Review ~
What Is Melaleuca and How Does It Work?
Founded way back in 1985 by Idaho resident, Frank L. VanderSloot, Melaleuca is a wellness company that specialises in green home and personal care products. The company promotes and sells its vast range of products through direct distributors via a multi level marketing format. In fact, they claim to now how more than 400 products to choose from. That’s a massive portfolio for a MLM company.
Their product range includes the usual household things such as dishwashing liquid, washing powders, but they also offer products in the personal care range such as soaps and cleansers as well. What I don’t like about their website is they don’t display any product pricing until you commit and create an account with them. It’s the only MLM site I’ve come across so far that isn’t transparent about their pricing. Through some research, though, I managed to find a few examples of Melaleuca pricing, and it’s very expensive. As an example, a bottle of shampoo costs $70.
WTF?!
As the company has been around for more than 30 years, they must be doing something right, despite being secretive about prices (as an aside, Amazon stock and sell Melaleuca products). Their longevity in business doesn’t mean I recommend getting involved in their distributorship. Amway and Herbalife have been around for a long time as well, but I actually don’t recommend getting involved with those giants either if you really want to make decent money.
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How To Earn With Melaleuca
Many people the world over adore network marketing and MLM business structures because much of the hard work has already been done, and getting involved in the business side comes with far less risk than starting a business of your own from nothing.
However, this kind of business model can be extremely hard work and a very difficult way to make consistent money above some spare change. MLM systems were created to make those at the top rich while the majority involved do all the hard work. That’s their nature by deliberate design. Give people incentive to sell the products for them and the owners get to sit back and count the cash. No advertising needed and the sellers do all the hard yards for very little reward. Most of it’s based on the “promise” of rewards.
So what does Melaleuca have to offer its distributors? Can you earn much by selling this product and building a down line?
Some MLMs charge a joining fee to be eligible to earn commissions. It doesn’t appear that Melaleuca charges any joining fee, so that’s a plus. You do have to buy a minimum amount of products per month to remain in active status and be eligible for earning commissions. But that’s standard with all health and wellness companies selling in this fashion.
While some people in Melaleuca are apparently pulling in 6 or 7 figure incomes annually, these people are right up the top of the food chain within the company. The majority of distributors are much lower down in the ranks and likely enjoying far less attractive incomes than those at the peak of the Melaleuca mountain.
According to the Melaleuca 2017 Income Statistics, the average yearly income for low level distributors is a mere $93. That’s what they term a Level 1 Product Advocate. Even a Level 3 Product Advocate is only averaging a tick over $500 a year.
Pretty mediocre income results and a far cry from the hyped up 6 or 7 figures they preach are possible for everyone involved. These figures are not profit, either. They don’t take into account the monthly product spend or any other expenses incurred along the way while being a Melaleuca distributor.
The business compensation plan includes the usual of:
- Commissions earned on direct sales
- Commissions earned from those in your direct down line
- Various performance and team bonuses
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Target Audience
Distributorships such as the one offered by Melaleuca often attract people who are hoping to start their own operation and escape the grind of a 9 to 5 working life. I don’t think the target is genuine entrepreneurs, as MLMs attract people who don’t really want to take a risk on starting something completely from scratch, or who are willing to risk a lot of capital.
The Pros
- No joining fee
- Customer satisfaction with the products seems quite high despite the massive prices
- Vast product range of environmentally friendly products
The Cons
- Super duper expensive prices for products by the sounds of it
- It’s based on the MLM business model, despite denials from the company and its members (some people love MLM, so that’s not necessarily a negative to some people)
- The average annual income of distributors is pitiful to say the least
- Minimum monthly product spend required to remain in active status
- Secretive about prices
Tools and Training
Your sponsor will help show you the ropes, explaining more about how the business system works, which products are good sellers and things like that. Attending conventions and Melaleuca meetings will also help train you up further, along with some useful information on their website.
How Much Does the Melaleuca Business Opportunity Cost?
There is no official membership fee, but you do need to purchase a minimum quantity of Melaleuca products every single month or you lose your eligibility to receive commissions and bonuses.
Is Melaleuca a Scam?
It’s not a scam, but probably not a very profitable way to spend your time if the goal is to establish a business that can grow with you, generate a really good income, or even offer the possibility of some passive income streams. Even just on the product side, joining Melaleuca to purchase household and personal products will prove to be extremely expensive. You might be better off doing your shopping elsewhere, unless you just love their products and can actually afford to buy them.
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MLM is just one way to try and make money, and it can be a very long and arduous task trying to establish a profitable business and make a living.
A better option I believe is affiliate marketing. This type of business can be operated entirely online and you have a global marketplace to sell to. With affiliate marketing you are not required to purchase any products to on sell. Instead, you are merely promoting existing products as a rep, being paid a commission when sales are made. The product manufacturer or retailer takes care of everything else. All your job is as an affiliate marketer is to get people to their website through your unique affiliate link.
It’s such a simple business model that anyone with a computer and an internet connection can do it. In fact, people of all ages and from all walks of life are highly successful in this business.
How’s it sound so far? Pretty damn good?
Great.
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Darren Burton
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