What is Meleauca?
Well Melaleuca???? – First it sounds like a strange name for a 1.8 billion dollar a year company, right? – It’s damn hard to spell. So, why the name?
Melaleuca is an oil – it comes from the Tea Tree.
The TreeTea tree oil is derived from the leaves of the tea tree. The tea tree was named by eighteenth century sailors, who made tea that smelled like nutmeg from the leaves of the tree growing on the swampy southeast Australian coast. Do not confuse the tea tree with the unrelated common tea plant that is used to make black and green teas.
Tea tree oil is applied to the skin (used topically) for infections such as acne, fungal infections of the nail (onychomycosis), lice, scabies, athlete's foot (tinea pedis), and ringworm. It is also used topically as a local antiseptic for cuts and abrasions, for burns, insect bites and stings, boils, vaginal infections, recurrent herpes labialis, toothache, infections of the mouth and nose, sore throat, and for ear infections such as otitis media and otitis externa.
This oil was part of the first products first introduced by this company. The company marketed it in the beginning as a very valuable product to treat various things. It was so important they named the company after it.
The company began in 1985. They named it after the oil – Melaleuca.
Oil of Melaleuca, Inc.
In September 1985, VanderSloot's brother-in-law Roger Ball and Roger's brother Allen Ball offered VanderSloot the helm of Oil of Melaleuca, Inc., a startup multi-level marketing business based in Idaho Falls.:58 VanderSloot said “the company was a mess” when he arrived. According to Dan Popkey, “A supposed 80 percent corner on the tea tree market turned out to be 5 percent. The FDA came knocking, because salespeople were exaggerating medical claims. A multilevel model that lured people to buy $5,000 in inventory offended VanderSloot's sense of fairness.” Oil of Melaleuca failed to achieve significant market share, and the partners shut down the company later in 1985.:58, 60 Half the legacy distributors from Oil of Melaleuca left after Melaleuca, Inc., was formed (below).
In 1985, VanderSloot founded Melaleuca Inc.,:58 a multi-level marketing company that sells environmentally friendly nutritional supplements, cleaning supplies, and personal-care products, and he has been president and chief executive officer ever since. Melaleuca operates internationally, with U.S. operations centered in Idaho Falls, Idaho, and Knoxville, Tennessee. Customers buy directly from Melaleuca's website or retail locations and “independent marketing executives” receive commissions from Melaleuca for each purchase made by people they refer and by people their customers refer,:60 through seven “referral generations”. The company refers to this arrangement as “Consumer Direct Marketing,” a term it has trademarked.
My analysis of Melaleuca – the company – You Decide for yourself! Is it Legit or a Scam?
Now, why did I start with the Information above? Well, it gives a background, as this company – Melaleuca – has been around since 1985. I am old enough to have known about it back then – saw it begin in the marketplace..
Melaleuca is a very big, stable business – not glamorous as all the new start up MLMs tend to be – with their big hoopla about their newest product or program – and it being the next greatest thing.
Melaleuca is a company that now offers over 450 products. They have some outside scientific studies to support the health benefits of some of those products. And – it is a way to sit at home – buy your everyday products online – and they show up at your door.
The company is presented as a “Consumer Direct Marketing” company. I prefer an Online “Membership based” Shopping Store – like a Costco or Sam’s Club – but online. And – you don’t have to buy the large quantities like those warehouses stores.
You do pay a small yearly membership fee ($19) – you shop on a computer direct from the manufacturer. The products then arrive at your door.
If you like the products and like their quality – maybe you see some health improvements from the health-nutrition products you use – or you value their household goods – you then can recommend this company to others – your referral – and Melaleuca will then pay you a referral fee. That’s the business model.
A person can go to the Malaleuca's Website and buy retail. Or, they can join as a member ($19) and buy at a discount of about 30%.
Quite frankly, their retail price is outrageous and I would never recommend that to anyone. You need to join as a member if you are going to buy.. You do need to buy something each month to stay a member. But, you are using these products anyway. And people seem to like the products. Melaleuca says there is a 97% re-order rate. That is very high. So many of these many products you do use anyway – you can change your order each month to only things you need for that month. No single product loading like other MLM companies. .
Now, if you only buy the cheapest or “on sale” stuff at a “regular” store – this might not be for you. This is not the cheapest products or the generic ones that are out here. There are cheaper products – If quality is not important to you – this program is not for you.
However, if you want high quality products – at or below – the high-quality competition’s products prices – this makes sense. Remember, the cheapest shampoo or laundry soap usually is a watered-down version and does not last as long – it takes more product to do the same thing. So are you saving money? You certainly are skimping on quality and probably results. And, this is what your family and you are then using on yourselves.
Let me give you a quick story – My friend buys and sells houses – he must refurbish them. I watched him use the cheapest paint available on my house. It did not cover and it took many, many coats to finish. A step up in quality (or two) and the job would have been done with one coat. And it would have covered better than the finished product with that cheapest paint. Plus, it took a lot more of his time to get it done. You know we are taught time is money right? Sometimes the cheapest is not a savings – right?. ..
Now, that paint is not hand lotion, shampoo or laundry soap. It is not the generic, synthetic vitamins and nutrition that have cheaper ingredients, quality and prices. Many times the cheapest does not do what it was intended to do – no good results.
My thoughts are this. Most all MLM’s are overpriced products.
Melaleuca products are high quality. The do have independent scientific testing on many of them. And – they are priced at or below “high quality” product prices. You sit at home and order online – no car trip in the weather or traffic – no shopping carts and aisles to walk down – no cost for gasoline.
So for all your shopping and product choices it seems okay (if you are not the “cheapest product” buyer). There are advantages here.
How about Melaleuca as a business? Here are observations.
- First it is “cheap” to start – $19 for a one year “membership”.
- There is NO product loading – but yes you need to use some each month..
- (Notice I did not say buy them. Most MLM’s suggest buying a package of many or all of their products. Melaleuca also suggests a larger selection. But, I say you need 35 product points per month – which is about $65 (US Dollars) to stay a preferred customer. You will need to buy that amount each month. You use some these products every day anyway – so buy only what you need or use to begin. Do not get suckered into product loading or a sample of everything even if don't use it normally. buy the products you use and then use them.)
- Melaleuca says 88% of sales are from customers. I cannot confirm that.
- 1.2 million customers buy something each month – their stats..
- Melaleuca manufactures it’s own products – so it is factory direct to you.
Melaleuca ranks among the top of the MLMs – Multi-Level Marketing or Network Marketing rankings. New ones come and go and they go up and down in the rankings – Melaleuca has been at this since 1985. This company is not going anywhere. They have addressed product loading unlike most MLMs. They have addressed a limited product line. They have provided normal products – we all use – at reasonable prices for quality products. And, they try to provide training, videos and education to help someone treating this like a business be successful it they learn and work at it.
A business is a business. Meaning you must market your concept. You must find and talk to people – In person, by phone, by internet marketing. You must learn what methods work for you and then learn and practice the techniques to refer people to buy Melaleuca products. And then – you must find people to duplicate what you do. It is a business.
A Melaleuca marketing group claims 97% can succeed. I figure it might be 3% succeed “big time”. But, I do believe you can use the quality products because you like them (you buy this stuff anyway – you have to) – you can then share the place you buy them – so others will also buy. How far you take that to make money is how far you will go to learn a business. The information is there – how you use it is on you.
I figure, if you get good products – that do what they claim they do – you like and use them – then you refer people to join the online “membership based buying store” like a Costco’s – then your referred people buy also and like it. – and then they share also…As long as you don’t overbuy your own products and you use them in your everyday life – it is a good situation. The products are used and not on your shelf.. You can make money if you do the work – in my opinion. It is not a panacea of huge income out of the gate.
Too many MLM’s tout – they have the best and most unique product(s) out there – Their product is unique and will change your life. Then they usually load you up with a lot of limited product choices and tell you the sell your products to others. Oh – by the way you need to order this much next month also to “stay qualified”. That's a problem – you can't use it up every month and you “load up”‘ Don't overbuy – get only what you use for yourself. .there is a lot available that you do use – as well as everyone else.
Now let’s look at the Melaleuca business model or payout.
Remember first – Melaleuca now has over 450 products. There are now some multi-level professionals moving their groups over to Melaleuca because of this model – no product loading – lots of product choices and stability in the industry. Not sexy – not the “new glittery object” in the market place – stable and diversified. An online “normal everyday” product store.
Here is a PDF link to there business explanation.
I had trouble finding a simple outline or graph of their levels and how it pays out. The PDF link above gives a better more complete explanation. The income stats are from 2014 but they have only gotten bigger.
My thoughts are this – like all my posts – if you are contemplating going into something – research it for yourself. If this is your first MLM business adventure or you have been in several and never made money or big money – if you get involved – join for the $19 – order some products you will use and try them. They are everyday stuff you use. If you like them and think they are a good choice to use – then share it with some people and ask their opinion.
I have used some of the Melaleuca Products in the past. I liked them and they were effective – in my opinion. If I am going to do a MLM – I want stability – I want a large and broad product base – I do not want the products way overpriced compared to the regular store prices.
All MLMs seem to pay as promised. That does not mean most people make money – they do not!. Most do not! So if you are gong to try this type of business – at least pick a company that offer lots of the products you use in real life. DO NOT load up on products to hit a level.or the next level. And DO NOT get your enrollees to load up either.
If it's stuff you use anyway – if you are satisfied with the products so that you would use them anyway – that's a good start. Even if you lose steam and enthusiasm to build a business – you still have good products. You do not want a MLM that loads you up with inventory in your house and loose that steam. Now you have lost a lot of dollars on product that no one is using.
I have been in lots of garages with lots of boxes of some MLM companies products bought by someone tryig to make big money.
So is Melaleuca legit or a scam?
Well as I often do in my posts. It's up to you and your efforts.
If you are looking at MLMs – I like this because you can get only stuff you will use. You don;have to stock anything. You don't buy more.than you yourself will use. So that is risk free – it you can maintain that discipline to only get your monthly volume of 30 points or $65 dollars of product at least – and then whatever else you normally use – and no more- you can protect yourself.
Obviously, if you enroll and start -I would encourage you to buy all the products you normally you use now – from the online Melaleuca Store – but no more! You then can tell your referrals your story as you encourage them to also join and buy. Its only logical.
If you are brand new – take all the advice and help and guidance Melalueca can offer. Don't expect success at first – you have a learning curve. If you know or have done MLMs before – do not fall into the trap of over buying products and follow your personal plan to get your business going.. If you are experienced and have a down-line already – you don't need my advice.
Legit or a scam?
It is legit if you understand – buy only what you personally will use and no more. Whether you will make money or not is dependent upon your learning Melaleuca's training and you apply it.
It is a scam if your enroller asks you to overbuy and load up with products – to increase their commissions. It's a scam if your enroller has no intention or can not help you get going and help you understand it all.
It's up to you – which applies for you.
I will try this one –Melaeuca – as I use the products anyway.
As an additional thought – most of us that are looking to make money online – we need education to learn how to do it. There is a university level training course out there. Wealthy Affiliate.
It does have everything you would need to make your way. It also takes a lot of work, learning and practice – just like any college level courses. You could use this course in any business endeavor including building internet marketing for Melaleuca. It is free to start your education – if you decide to go far into it – it would cost you $49 per month but you get 2 free websites to build and market, free website hosting and you can put additional websites into that hosting at no additional cost. . That's a huge saving – as I pay half that just for my hosting at WPX. It free to begin,use and learn their information. There is no up-selling.and there is NO information or question that is not answered there. You can go got to this link and check it out for free.