Hey all, welcome to my review of Melaleuca.
Many have been wondering “is Melaleuca an MLM company?” since the founder has always insisted that Melaleuca is not an MLM company.
So I want to do a review post today on Melaleuca to really figure out whether they are just another normal wellness company OR are they actually operating under the MLM structure.
I’m writing this as a 3rd party with no means of association with Melaleuca. But I do have uncles and aunts who have joined them as an agent.
I want to point out different things that I have seen with Melaleuca and whether or not it is a business you would want to join as a way to make money.
A disclaimer, I have tried Melaleuca products before and I do enjoy using them.
BUT, that doesn’t mean I will recommend anyone to join them to make money. I have a better way to make money that I could recommend.
As always, before I start my review, I want to congratulate you for reading online reviews first before jumping and committing yourself into something you’re unsure of.
It’s THE way to avoid getting into money traps and scams.
If you’re here to find whether Melaleuca is a legit company to make money from, well let’s get on to it.
Is Melaleuca an MLM company? Here’s the truth..
Founder: Frank L. VanderSloot
Product Type: Wellness & Consumer Goods
Price: $19 plus tax + $19 plus tax charged annually + miscellaneous fees
Summary: Melaleuca started off as a wellness company but now has expanded its product range to consumer goods. They have been around since 1985 and have thrived with multiple achievements under their belt.
That being said, the company has always insisted that they are promoting their products via referral marketing, which is similar or the same as MLM. In today’s post, we’ll be covering “is Melaleuca an MLM company” and whether or not it’s worth it to join as an agent.
If you’re tired of finding ways to make money, here’s my #1 favorite way of making money online that’s sustainable and won’t need you to find recruits under you:
What Is Melaleuca?
Melaleuca was founded by Frank L. VanderSloot in Idaho, the United States in 1985. The company has now expanded to 20 countries, including Canada, Australia, Japan, Singapore, etc.
Melaleuca is also one of the companies that doesn’t spend on advertising. They promote their products by word of mouth and tell others that they are using “referral marketing’. Which I will talk more about below…
They started off with wellness products such as supplements, essential oils but now have come up with household products too like laundry detergent and dishwashing liquid.
Their products are claimed to be cruelty free. Instead of testing products on animals, they test their products using human cells and tissues. To which I give kudos to.
You can watch their video below. It does make you feel excited about the company.
BUT, remember to read this review until the end because it’s NOT as straight forward.
Preferred Member Membership
I always like to include this section whenever I’m writing a review on MLM companies, because they all tend to have this part in their customer retention plan.
Did you realize that I’m saying MLM companies tend to have this structure?
Well, guess what… Melaleuca has it too.
So it kind of gives us a clue already there.
Anyway, let’s talk about this first.
Just like any other MLM companies, there’s a premium or preferred membership for them to lock in customers for a number of months. Customers will get automatic shipment sent to their house every month for products that they want.
The thing about this type of membership is that, you always need to pay for it ($19 + tax) and it seems so hard to actually cancel the membership. I’ll show some reviews below.
Is Melaleuca A Legit Company?
Despite some negative reviews, Melaleuca IS a legit company.
They have been around for more than 3 decades and even I have tried their products and actually won’t mind keeping them.
They do have a legit business with good products. And I do think as a normal customer, you can actually find their products very good.
BUT, you must know that their products are NOT cheap. It’s also very hard to find and see the products price on their website. For some reason you need to add them to cart to check out the price.
With that, know that it’s not going to be easy to persuade customers to buy products from Melaleuca because almost if not all products from Melaleuca are more expensive that the high rated products from Amazon.
Now that you know more about Melaleuca, let’s talk more about the topic of this post.
Is Melaleuca an MLM company?
First thing first, let’s learn what MLM company is by watching the video below:
If you don’t have the time to watch till the end, here’s a summary.
- You’re compensated by the sales you generated AND the sales generated by your recruits
- Also known as referral marketing 😊
- A type of direct selling 😊
- Not only sell the products but encourage users to join the company as agents 😊
- Complex compensation plan 😊
If you want to really learn the whole history of MLM, check out the video below. It’s worth it!
If you have watched the 2 videos above, you can see the bright sign of “Melaleuca IS an MLM company”!
Yes, they have good products and yes, they use word of mouth to penetrate the market and promote their products.
Even though you are not getting compensated if you recruit people under you, you will still make money if the recruits under you generate sales.
And, if you were to go for their training, they DO encourage you to find other recruits for you to be able to make more sales.
We will talk a little bit more about their compensation plan below but know this – they have one of the most complicated compensation plan I’ve ever seen!
Is Melaleuca A Pyramid Scheme?
Now that you know Melaleuca IS an MLM company, the next question that you might be wondering is “is Melaleuca a pyramid scheme?”.
Well, I’m glad to let you know that Melaleuca is NOT a pyramid scheme. They actually operate in a legal means of an MLM company.
They mainly earn their income by the sales of products, not by recruitment of their agents.
So if you are thinking of joining them, know that Melaleuca is NOT a scam.
But, you have to know whether it’s worth it to join and make money with them. That brings us to the next section of this post.
How To Make Money With Melaleuca?
This is probably the section that you are waiting for – just how to make money with Melaleuca.
First thing first, you will need to register yourself to become one of their agents and that will cost you $19 + tax.
Primarily, like any other MLM companies, you will receive compensations from:
- Sales generated by you (7% + discount for yourself)
- Sales generated by your downlines or recruits
- Bonuses (Advancement, Pacesetter, Mentoring, Expanded Mentoring)
The more recruits you have, the higher the possibility for you to move up the level and get a bigger percentage of commission.
But it’s good to note that you won’t make money just by recruiting people – that’s a sign of a pyramid scheme.
You make more money when you recruit people and those people able to sell products and recruits even more people under them, and those other people able to sell even more products.
For the full compensation plan PDF, you can click here.
Basically, there are a few factors that you need to take into account to gauge how much you’ll be able to earn:-
- Your ability to sell the products to customers
- Your ability to sell even more products to each customer, so that they will have a high average order value
- How many of your recruits/downline able to sell products each month
- Your leadership skill in mentoring your downline to build their ranks
IMPORTANT: In order for you to be able to still get your commissions every month, you will need to satisfy 35 points every month (~$90).
I really hate this condition when it comes to making money with MLM.
If you want to learn how to still promote the products that you love, get commissions without having to be eligible every month to get money, click here and learn how to make money in a much better way.
How Much Can You Make With Melaleuca?
Well, not much, really.
Let’s first calculate how much is your average monthly expenses.
- Upfront fee ($19)
- Commission eligible ($90). You can offset this if you were able to sell products and get commissions. But truth is, many new members like any other MLM will struggle in the first year.
$19 + (90 X 12) = $1,099/year.
It’s not very expensive. But this doesn’t include the gas expense you will need to spend to go and promote the products to your friends.
Or even lunches where you will host to introduce the products to your circle.
Now just how much can you make to offset these expenses? Let’s take a look at their income disclosure.
11% of their total members have recruited more than 8 new customers. Out of that 11%, almost 90% of them on average earn $2,209 annually.
It’s $184 a month.
In comparison to the expenses that we have just calculated, yes, you’re in a positive whereby you are making some profits.
$184 – $91 = $93
BUT, remember that your TIME is an investment too. Your energy IS an investment too. Ask yourself whether $93 is worth your time everyday promoting this product.
What I Like About Melaleuca?
1. Good products
As mentioned above, I have tried Melaleuca products and I do like them. Even though I like their products, I’m not a preferred customer because I don’t want to commit myself to their products every month.
And it’ll be hard for me to cancel. I’m just not into that.
Secondly, I like and give kudos to all companies that have cruelty-free practices. Melaleuca also makes natural ingredients products so I do like that part about their company.
If you are new to their products, many of their products are concentrated. Concentrated enough for you to add water and use them as per normal. They still work as normal even when you dilute them.
It is one thing that I like about them. As one product can go a long way.
There are also many good reviews about their products that you can see below:
2. Credible company – Inc and BBB
They have accredited by BBB – which is not easy to get. So I do applaud them to be able to get accredited AND maintain their rating.
They have also been ranked on Inc. magazine’s list 500 fastest growing in the nation.
3. Have Your Own Website…BUT
I like it when MLM companies have evolved from doing the traditional “Tupperware” parties to using social media to get customers and recruit users.
For Melaleuca, they have encouraged their distributors to have their own website whereby they can give educational content to users as well as promoting Melaleuca’s products.
That being said, they have a very strict code when it comes to having your own website.
So strict that they have a list of “Approved Providers” to create your website. And of course, it will cost you fees every month.
If you want to create your own free website promoting the products that you personally love, without even having to be eligible for a commission every month, you can check out my free training here.
It’s a lot easier, cheaper and more sustainable.
What I DON’T Like About Melaleuca
1. Cancellation Process
I’m not exactly sure why but it’s very hard to find an MLM company that has very easy cancellation or refund process.
Melaleuca has 90 days money-back guarantee of satisfaction but from what I’ve read so far, users have always had a very bad experience canceling their membership.
2. So Hard To Find Product Price
I can’t really wrap my head around this point. It’s just SO hard to find the product’s price on the website.
They have a product catalog that you can refer to, but again, they didn’t share any pricing on it. You probably have to either sign up on their website to see the price or approach an agent to inquire more.
I just am not a fan of this.
One of the reasons I think it’s hard to find the product’s price is because their products are not cheap. They are actually very expensive.
Therefore they might need an agent to really explain the benefits of investing such amount of money for their products.
And because their products are expensive, you might want to think twice before buying AND before committing to become their distributor.
3. Recruiting People
If you’ve read my other MLM reviews, you’d know that I just don’t like recruiting people.
I much prefer to get people to come to me and purchase from me instead. If you want to know how to do this, get my FREE training here.
I’m not going to lie and tell you that nobody will make money with Melaleuca. Some people will.
But if you’re not someone who likes to talk and make conversation with people, just give yourself a break and step away.
I learned this the hard way when I tried doing MLM before. It just drains out your energy, every day.
Yes, every day because your upline will remind you or want to get an update from you on how many appointments you have that day etc.
It’s honestly something that I don’t want to get involved in anymore.
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