CEO: Frank L Vandersloot
Startup Cost: $29
The company was founded in 1985 by Frank Vandersloot and specialises in health and household care products that are good for the environment and safe for people to use.
The company says it is not a multi level marketing company and after doing a bit of digging, it seems perhaps on some technical grounds they are not. However, they are extremely similar to typical mlm’s many ways and (although a controversial model) mlm isn’t a scam in itself.
I actually don’t mind their products, at least what I can see of them anyway. They don’t allow you to buy their products right from their website without having been referred by someone directly which is annoying. You can’t see prices or make a purchase unless you’ve been signed up already which makes it hard for people to evaluate their product range properly.
There are over 450 products from household cleaning, skin and beauty, health, wellness and nutrition among others. To me it seems they don’t claim to be the key to ultimate health and wellness so much as they focus on environmentally friendly and cost effective products. So, despite keeping key details from the public, the products seem pretty legit!
They provide a patented ultra concentrated formula for some of their products which save the environment and is apparently more cost effective. I haven’t used these myself so it’s probably something you’d need to work out for yourself as to how much you like them and how good the value is. From what I can see, there are more positive reviews on the BBB website than negative ones which is a good sign.
The Melaleuca Business Opportunity
There’s not a whole lot of marketing material on their website about the opportunity except for a few convincing and seemingly genuine testimonials. Personally, I believe the people in the videos and think there is not much hype in comparison to a lot of opportunities so this is a good thing.
The general idea is to sign up as a customer, buy some products and then tell others how great your experience has been. Hopefully, they will buy some products from you and join your team which means you get to use products you love and make an income while you’re at it. Sounds good, but is it really that simple and amazing?
Compensation Plan Overview
In this section I just want to outline some of the main points in the Melaleuca compensation plan and help you to understand some of the real costs involved in getting started. This was accurate to the best of my knowledge at the time of writing this and is subject to change, so always do your own research before making any decisions.
Ways You Can Earn
There’s always a lot of different types of bonuses and ways to earn within the mlm world so I like to keep things simple and straight forward.
Retail Commissions: You can earn commissions by selling people the product. This comes in anywhere from 7-20% depending on your level within the company.
Downline Commissions: You can earn based on your organisations performance at a flat rate of 7% and this is capped depending on your level within the company. This is one of the key differences I found that is different to most mlm companies I’ve reviewed. There are no levels, your team are simply placed in your organisation as a group and you earn 7% on their sales. The amount is capped but increases as your rank increases.
Either way, this is where most people will focus their attention and where the majority of money is going to be made. Leveraging the efforts of others is the name of the game with companies like this.
Bonuses: There’s a lot of different kinds of bonuses on offer and essentially it is to reward people for higher performance within the company.
It was pretty hard to find information on the joining costs with this business because the company keeps everything so secret but I managed to find a few reviews saying it costs about $29 to become a ‘preferred customer’. Anyone can do this (as long as they have been referred by someone) and if you want to be in business this will absolutely apply to you.
This fee allows you to get 30-40% off your orders and requires an auto-ship every month to be part of, which leads me to talk about the cost of staying in business.
According to the compensation plan at the base level of ‘Marketing Executive’ you must acquire 29 product points each month to stay active and maintain your position. Based on the US price list this means about $40 per month will be the absolute cheapest option to stay in business.
There is the option to buy a ‘Business Value Pack’ which contains a few samples and what seems like some pretty basic things you would need to build your business with. I’m not convinced its worth that amount of money but I could be wrong.
Whatever the case may be, this would be the absolute essentials in getting started with this company for anyone serious.
The Startup Costs
It was rather difficult to find concrete facts about the costs but as mentioned, this is accurate to the best of my knowledge and feel free to correct me if you are a distributor.
Joining Fee= $29
Staying Active= $40 per month
There are other costs involved such as seminars, conventions and trainings and their related costs like travel and accommodation. While these aren’t necessary I assure you there are heavily pushed on people as essential to success. It also seems like with this business you’d be buying a lot of material just to recruit people into the business like:
- Promotional CD’s
- Referral cards
- Enrolments packs
- Product samples
- Product information guidebooks
In comparison to a lot of opportunities this is not very expensive but these are worth knowing before you join.
What I Liked
- Not very overhyped
- Strong product focus
- Disclose average member earnings
- I like their proactive approach to the environment and creating more eco-friendly products
What I Didn’t Like
- The whole thing is very hush hush… you can’t even see product prices unless you sign up as a member
- They claim not be like most mlm’s but in fact they are very similar
- They teach warm market techniques which I’m not a fan of
From what I can see, the company has some good things going for it and after being in business for over 30 years, they are clearly operating a sustainable model. Just how good their products are I can’t say for sure, but if you love them and want to share your experience with those you know, no doubt you could make a few extra bucks and score some free products.
On the other hand, if you are trying to build a full-time income, I do recommend branching out beyond your warm market. There really are more effective ways of selling products and growing your business than this. Whatever you decide, I hope this review has been helpful.