Melaleuca Review – You Dare Call It an MLM?

Have you already heard of Melaleuca?

You probably have not. Or if you have, you may have read about it somewhere or have been asked by a colleague or a friend or a neighbor to be a part of the Melaleuca team.

I may be a little bit hesitant to represent the company, and I know you should, too. At the end of the day, it’s your money that we’re talking about here; money, time, effort, you know the drill.

Well, if you’re a bit hesitant, then good! This is because before you decide on such things, you need to at least get to know the company you would, later on be a part of (or not).

And so here I present my honest to goodness Melaleuca review that’s sure to be a good basis for your decision whether or not you join (or purchase from) the company.

In this review, we will look at the Company itself; check out Melaleuca product reviews, complaints, praises, and all the works!

So here goes.

The Company

So, Melaleuca had been in the market for many years now. Started by CEO Frank VanderSloot in 1985, the company has proven that it can withstand the test of time. It has grown into a company that’s internationally-recognized, with loyal ( and not so loyal) customers the world over. With more than 500 products and still thinking of innovating and adding a few more, it promises to continuously provide the consuming public with its non-toxic (that’s why it’s always known to be green), superior-quality products.

As I mentioned earlier, Melaleuca has a wide variety of products for sale. Their website would show you all of them – from medicine, cleaning supplies, pet care, home necessities, skin care, and a lot more – one just does not run out of products to buy. Suffice to say, Melaleuca has an answer for every need for everyone.

The annual sale figure for Melaleuca is $2 billion. Comparing to Amazon’s figure of $136 billion sales figure in 2016, $2B for an MLM company is awesome! 

How Does it Work?

To summarize it all up, you have to create an account with Melaleuca before you can start shopping.

According to the Melaleuca website, once you have created an account and password, you will be given access to exclusive online content which includes product specials, tools and information that could help you manage your business, special offers, incentives, motivational and informational training audios and videos. Well, that’s a lot of benefits you gain just by creating an account. Besides, the last bullet says, “And lots more” which promises more benefits in store.

And so finally, you have already created an account and were given access to all those perks. You have also made your first and second and your nth purchase from the online store. So, how do you earn?

To earn, you build your team by recruiting people to join the Melaleuca family and have their names placed under yours. Of course, just like you, they also become Melaleuca customers themselves. And when your recruits start to buy and have customers of their own and they start building their own teams, this is when you start earning.

Well, reading through the varied comments and feedbacks of consumers online, there seems to be a mix of them. While there are happy and satisfied customers, there are certainly a number of pissed ones as well; with negative comments ranging from the products themselves being overly priced (more of that later) to bad customer service, to even issues about their return policy. We will get to the comments later.

Anyway, as for the customers themselves, especially the happy and satisfied ones, most of them purchase Melaleuca products month in and month out. This could be an indication that these customers are really satisfied with the way the products work. Or this could also be because they have to retain a certain amount of sales per month for them to continue earning from Melaleuca. Whatever the reason may be, people purchase products and it has grown the company for more than three decades!

How Do You Earn?

This is a very common question that’s always asked. How do you earn?

First and foremost, when you sign up to represent Melaleuca and support Melaleuca products, you are baptized with being called an independent marketing executive.

As with all MLM companies or companies with the same or similar business model (more on this later as Melaleuca marketing executives press that the company isn’t an MLM), you start earning once you are able to successfully invite and enlist another person to join the team. As for the case of Melaleuca, income is affected by the following factors:

  • How many customers you have; and
  • How much your customers purchase every month.

By looking at the two above, it would be enough to say that your income depends mostly on the number of your customers and the amount they purchase. If you have a lot of customers who regularly purchase month per month, that’s a lot of money. Or if you have a few customers below you who would purchase huge amounts of products, that’s also good income. This is because every time a customer pays Melaleuca for a product, you get something out of the purchase – a commission.

The Melaleuca Compensation Plan

Now, we all know that for us to earn from Melaleuca, we have to have a balance of the number of customers and the amount they purchase, but that doesn’t give you much information as to how much you’re going to earn.

Below is the breakdown of how much:

  • When you enroll a preferred customer, you get a commission of $25.
  • If your customer purchases a Value or an Essentials Pack, you get anywhere from $50 – $100.
  • From the second month, any of your personal customer’s purchase would earn you anywhere from 7%, 14%, or 20% of product points. Make sure these are your personally enrolled customers.
  • If your customers have already enrolled their very own customers, a 7% commission is given to you on product points if your customer’s customers purchase Melaleuca products.
  • You also get a bonus for the achievement of a new status like going up the Director ranks or whatever.

As you can see, there are numerous ways to earn when you are with Melaleuca (and there certainly are more ways than what I have mentioned).

Is it something you need to go for? It depends on you. If you regularly purchase products and if you believe in the products themselves, you can go ahead and go for Melaleuca; but if you do not believe in the products or if you are not able to recruit as much as you want to, then you may have to think about it first.

You have to remember that when in these types of companies, your commitment to work, together with your convincing skills would determine your fate on whether you will or will not succeed.

As you can see, companies that require you to recruit to earn may be lucrative at times but this is no walk in the park. It always requires your time and lots of convincing powers for you to enroll friends (and even strangers) to join the company. And again, if you can do it, this may be the company for you so you can go ahead and try.

The Products

As earlier mentioned, Melaleuca has a wide variety of products that seem to be the answer to all of your daily concerns. Just like pictured below (photo from the Melaleuca website), their products are further divided into Nutrition, Medicine Cabinet, Beauty, Household, Bath and Body, and Essential Oils.

Melaleuca products

There’s one thing though that you have to know before anything else. And I have to reiterate what I said earlier that you have to have an account with them before you can purchase.

So, what are their products? There are medicines, bottles of shampoo, pet care, skin care, everything.

But what sets them apart from the others, say, another bottle of shampoo? For sure, they would claim to work really well and would give you a mane of oh so beautiful hair.

But what sets Melaleuca apart is the price. It seems like 1) Melaleuca is not so much into revealing the prices of their products, and 2) forums portray that the products are priced just too high.

Although number 2 is not really proven as these are comments from forums made by Melaleuca users, number 1, however, is really true. Looking at their websites, you’d see this:

And when you click on a specific product, say, for example, the Bronze Glo Age-Defying Self-Tanning Lotion, you will be brought to this page:

I was hoping that I would be given the price once I click on the “add to cart” button but it only led me to a sign-up page where it is asking me to sign-up and create an account. Perhaps, when I have my own account I would be able to know the prices?

But why the secrecy? Probably a marketing tactics to get me signed up? 

On the other hand, Melaleuca complaints say that their products are way too expensive. I’m pretty sure it is the case for this one person here below:

On a different note, one comment stuck. This one Melaleuca consumer mentioned that the products may seem expensive but that they are shipped concentrated and so when you mix it with water, you can use it for a long time. In the end, it is not as expensive as it seems.

Anyway, I leave it to you to judge. At the end of the day, the word “expensive” is just subjective. Hah!

But if you are here for my opinion, MLM products are always little expensive than the usual products that we buy from shops, thanks to the multi-level commissions.

Melaleuca in Forums

Well, aside from the above-mentioned feedback on their secrecy on the prices and the company’s allegedly high-priced items there are varying feedbacks revolving around Melaleuca.

Like this one:

While this one person above posted about having difficulties in cancelling orders, the next user didn’t seem to have any problems with the cancellation at all:

Perhaps we can attribute this to some consumers not fully understanding everything before the sign-up? This is actually one of the reasons that have been raised by one of the users about something that says the consumers did not fully understand how the membership worked before signing up.

Whatever the reason may be, I should point out that it is wise to always ask. Before signing up for Melaleuca (or for any other company), make sure to list your questions and concerns down and always, always ask these questions to make sure that everything is clear before you decide.

Melaleuca Pyramid Scheme – The Truth Behind the Allegations

A pyramid scheme, first and foremost, does not have any product to sell. That point alone is enough to prove that Melaleuca is not a pyramid scheme.

A pyramid scheme, as defined by Merriam-Webster, is usually an illegal operation in which participants pay to join and profit mainly from payments made by subsequent participants. This just means that the “income” you are supposed to get from these pyramid schemes are from the payments made by people you or somebody else have recruited to “invest”.

As for Melaleuca, it is a different story altogether. Melaleuca, as mentioned numerous times, offers a wide array of products for sale. You may or may not agree with claims of how effective their products are but the fact remains that they are selling something to their customers.

If you believe Melaleuca is a pyramid, too should be a pyramid scheme. Because they pay thier promoters (affiliates) 1-8% per sale generated. Now, would you call Amazon a pyramid scheme?

OK, and so if somebody asks you about Melaleuca and on whether it is a pyramid scheme or not, the answer is no. Melaleuca is a legit company that operates legally. Besides, it’s been there for more than 30 years. You can’t expect a pyramid scheme to last that long!

Melaleuca as MLM

Now, this is a different story altogether. Many of Melaleuca customers often react when they are called a multi-level marketing (MLM) company.

First, let’s see what an MLM company is.

According to the Urban Dictionary, an MLM company adopts a business model in which marketers are paid commissions on the sales of other marketers that they recruit, as well as on their own sales. Urban Dictionary further states that for a company to qualify as an MLM, the business plan must actually focus on selling a marketable product or service.

The Federal Trade Commission (FTC) defines multilevel marketing as a company where individuals sell products to the public – often by word of mouth and direct sales. And as per the FTC, distributors earn commissions, not only for their own sales but also for sales made by the people they recruit.

If we look at how MLM is defined, one thing is consistent – it is that in MLM, individuals sell to the public and earn commissions from their sales and the sales of their downlines or recruits.

And by the way I look at Melaleuca, they have distributors, they earn commissions not just from the products that they purchase but also from the products that their recruits purchase. Isn’t this enough already for Melaleuca to be considered as an MLM? Unless the Melaleuca distributors have a different definition of MLM, for now, I would have to park it here. Melaleuca is an MLM.

But what is wrong with an MLM? Why deny?

What I Think of Melaleuca

I think Melaleuca is a nice enough company to work with, taking into consideration that it’s an MLM.

I mean there may be Melaleuca company reviews that bash them from start to finish but there are also good things to read about the company.

Earning from the company may not be a walk in the park but that’s just normal. Like all kinds of jobs take effort, focus, and determination. You can’t just expect to sit there and sign contracts and papers and earn a lot… like a lot! You have to work hard for it. I know those people in Melaleuca who are earning thousands of dollars have had their share of hardships in the beginning. So, if this is something that you think you can do, go for it.

But what if this is something that you cannot do? What if there had already been an experience in the past when you did an MLM and never succeeded in recruiting and selling (in this case purchasing)? Then this is something you have to think about. You may want to explore your options first and see whether this is something you’d invest your time and effort to.

One Response

  1. Craig Ballhagen November 3, 2018

Leave a Reply