Melaleuca is a “Health and Wellness” company with over 30 years of being on the market. I am guessing you are reading this review to find out more about the Melaleuca business opportunity.
Are you looking for a work from home business opportunity with flexible hours away from the 9 to 5 grind? Or do you want to establish an independent business with the chance of earning a substantial income with the Melaleuca multi-level marketing structure?
Read my review to find out, if Melaleuca is the right MLM business opportunity for you and if you really can make money with it.
Most people don’t make much money with MLM companies. Learn how to build a real business.
This review is not about Melaleucas products. Instead, I am only looking at the business opportunity this MLM company offers.
So if you are sitting on the fence whether or not to join this business as an independent marketer, please read on.
What Is Melaleuca All About
Melaleuca was founded in 1985 by Frank Vandersloot who is still the CEO and President. The headquarter is in Idaho Falls, U.S.A.
Melaleuca is a BBB accredited business with an A+ rating which is always a good sign. Even though they’ve got a high rating, there are still many mixed reviews ranging from over the top positive to very negative experiences. The truth as always lies somewhere in the middle.
The company is present in twenty countries like Australia, New Zealand, Germany, the UK, and Taiwan, just to name a few.
Melaleuca calls itself the Wellness Company with the focus on eco-friendly, organic products. They are selling over 400 products ranging from household cleaners to skin care, from Vitamins and weight-loss supplements to energy drinks and more.
It is very similar to Amway regarding the business model and product range. Some of the main differences between these two companies are the fact that Melaleuca focusses on environmentally friendly products and sells their products via a membership model.
How To Become A Preferred Customer With Melaleuca
Most people are joining Melaleuca’s membership model that gives them the chance to purchase their products for a discounted price of at least 30 to 50% of the retail price. If you do join, you are called a ‘preferred customer.’
The membership costs initially $19/year and renews automatically every 12 months for a fee of $19. The downside in my eyes is that you have to commit to ordering products every month worth at least 35 points which equals roughly $50.
That is a lot of money for some people, and most likely you’ll spend more than is required.
Melaleuca also offers Loyalty Shopping Dollars for watching product videos and videos about ‘learn how to earn.’ A pretty smart idea to get more people into becoming independent distributors.
The membership model with the required auto-ship each month means a recurring commission on the product sales for distributors. Easy money right there!
How About The Business Opportunity?
According to Melaleuca, if you are taking on the business opportunity, you don’t have to sell any products or carry inventory. Your ‘job’ is to help new customers to set up their shopping account.
Becoming an independent marketer for Melaleuca is very simple, together with your enrollment form as a preferred customer, you fill in the business agreement form. The fee of $19/year remains the same.
Once you referred a new customer, you can earn up to 20% commission on their product purchases.
Read the full compensation plan here.
Let’s get down to the nitty-gritty. A 20% commission sounds pretty impressive, but it kicks only in when you have referred at least 20 customers who have signed up for the ‘Preferred Customer Membership.’
As you can see in the screenshot, you’ll only get a 7% commission on product sales for up to seven active customers. It increases to 14% for 8 to 19 customers and eventually to 20 % for twenty plus paying customers.
Also, the commission payments start in the second month that a customer has enrolled with Melaleuca, not in the first month. For the first month of enrollment, you can earn a 50% commission.
Commission payments are getting paid for up to 150 points a customer spends each month. If they spend 200 points, you are only getting a commission for the 150 points.
Melaleuca pays advanced bonuses and commissions down up to seven generations depending on the status you have achieved on the business ladder.
According to Melaleuca, the retention rate for memberships is around three months.
Related post: How I Make Passive Income Online and earn over $500 a month.
How To You Actually Recruit New Members?
The screenshot shows Melaleucas seven business strategies. As with most network marketing companies, building a contact list is crucial. Who do you know you could talk about the products/membership? Make appointments and hold presentations,
Even though Melaleuca claims that you don’t need to do home parties, you’ll still need to show potential new customers the products and benefits of them. Plus, why would they choose Melaleuca over other supermarket products?
After all, a $19 membership fee plus a required minimum monthly spend of around $50 is a lot of money.
There are lots of marketing materials available for purchase including a business kit with product samples, business cards, etc.
You can also get a personalized website starting at a monthly cost of $14.95 a month depending which one you choose. There are different kind available from different vendors. Potential customers can’t buy anything through the site. It is purely to provide more information to your customers.
Pros Of The Melaleuca Business Opportunity
The business model seems fairly simply with the goal to help new customers to sign up for the ‘Preferred Customer Membership.’ You don’t need to sell products or carry inventory.
The startup costs of $19 are low, but you still have to spend $50 a month on products plus invest money for business materials.
I like the eco-friendly approach and the fact that customers can earn loyalty points and money back on product purchases.
The company seems pretty solid with being on the market for over 30 years, and annual sales of $2 billion.
I do like the fact that you earn a recurring commission on existing customers since they have to purchase every month.
The Cons Of the Melaleuca Business Opportunity
Even though Melaleuca has been around for over 30 years, not too many people know about the company and their products. Melaleuca doesn’t invest in advertising, so it is up to the customer to ‘spread the word.’
That makes it quite challenging to refer new members if they have never heard of the company let alone have tried the product.
Filling in a form and paying a joining fee plus a monthly required minimum amount of products can be another big hurdle.
It takes fantastic customer and sales skills to refer new members on a consistent basis. The information regarding the business opportunity is hard to access if someone wants to do their research.
Why not be more open about it and more people would be becoming a business partner with Melaleuca.
My Final Thoughts
Overall, the Melaleuca business opportunity seems to be legit, and I believe you can make a little side income.
To earn a full-time income with the company will take excellent networking marketing skills and lots of hard work as with any business.
I found it frustrating to find information about the membership costs and product prices. I’d prefer them to be more open about it and it return it will be much easier to refer new people.
The same applies to the business side of Melaleuca; I don’t get why they have this ‘hush hush’ mentality.
There is no risk to signing up the business agreement with Melaleuca and no hidden costs. You will need to invest money in the business collateral and for product samples though so you can do presentations and the likes.
If you do love the products and feel they are worth the money then, by all means, go for it. But expect to put long hours and consistent work into it to build a substantial income.
I don’t think the ‘product sells itself’ because of the monthly auto shipping costs.
Please let me know about your experience with Melaleuca in the comments below.
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