Welcome to my comprehensive review of Melaleuca, a company that has sparked much debate and curiosity in the world of multi-level marketing (MLM). If you’ve been wondering whether Melaleuca is a pyramid scheme or a legitimate MLM opportunity, you’re in the right place.
In this review, we’ll dive deep into the workings of Melaleuca, examining its products, business model, and the potential for earning an income. Whether you’re considering joining Melaleuca or are just curious about how it operates, this review will provide you with the insights you need to make an informed decision.
We’ll explore the company’s background, its product offerings, and the experiences of those who have joined the program. By the end of this review, you’ll have a clearer picture of whether Melaleuca is the right fit for you. Let’s get started!
Disclaimer: This Melaleuca MLM review has been thoroughly researched with information and testimonials that are available online to anyone in the public. Any conclusions drawn from that information are my own opinions.
Melaleuca MLM Review Overview
Product Name: Melaleuca
Owner: Frank VanderSloot
Product Type: Wellness MLM Company
Price: $29 first month and then $19 a month, plus extra costs
Best For: If you love Melaleuca Products
Pros
- Wide Range of Good Products
- Longevity of Business
- Positive Product Reviews
Cons
- Hidden Fees
- Expensive Products
- Lack of Sustainable Income Potential
- Low Average Earnings
Quick Summary
Recommended? No. Although Melaleuca is not a pyramid scheme, to make significant income, you must recruit many individuals and hope they replicate your success.
Table of Contents
Is Melaleuca a Scam Company?
In my review, Melaleuca is not a scam. They sell legitimate products, and members of the Melaleuca program receive the payment as promised. Additionally, their products are safe and approved. However, despite offering organic and high-quality products, Melaleuca MLM falls short in terms of commissions, making it a less favorable business opportunity.
Being a Product Advocate means recruiting a lot of people and maintaining hundreds of active customers to earn a decent part-time or full-time income. This isn’t easy—it requires reaching out beyond your family and friends. While the opportunity to earn money with Melaleuca is legitimate, it may not be the right fit for everyone. Personally, I don’t highly recommend Melaleuca.
One major downside of MLMs, in general, is that most people don’t make significant income. For instance, Melaleuca’s income report for 2021 shows that only about 9% of members referred at least one customer, and even fewer referred more than eight. This is far from what’s needed to make a full-time living.
To be successful with Melaleuca, you need to dedicate a lot of time and effort, often at the expense of other pursuits. There are definitely better ways to invest your time and money. Keep reading my Melaleuca MLM review to gain more insights before making a decision.
Related Post: Forever Living MLM Review
What Is Melaleuca?
One of the most frequently asked questions online is whether Melaleuca is a pyramid scheme. In this review, I’ll focus on addressing that question. But first, let’s provide a general overview of the company.
Melaleuca, established in 1985, operates within the health industry, specialising in marketing “green” and “all-natural” household health products. The company is named after the Melaleuca plant, which they claim is the secret behind their terrific products. I haven’t personally tried them, but they might be as exceptional as claimed.
Melaleuca primarily markets vitamins, supplements, beauty care, detergents, and cleaning products. While they offer other items, these are their main products. What sets Melaleuca apart is its claim of products free of chlorine, formaldehyde, coated pills, and other non-green ingredients.
Their appeal and potential profitability lie in embracing the environmentally friendly movement, a trend that has gained significant traction. In that sense, Melaleuca was ahead of its time. However, the question remains: is Melaleuca a pyramid scheme that takes advantage of individuals like you? Should you consider joining the business? This review aims to uncover the truth.
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Is Melaleuca an MLM (direct sale)?
For many years, Melaleuca, a billion-dollar wellness company, has wrestled with the question: Is Melaleuca an MLM? In this post, I’ll delve into my expertise in the MLM industry and present my Melaleuca Review. But first, let’s clarify the distinction between an illegal scheme and a legal MLM.
Reading what Melaleuca and even direct selling regulators say can be quite confusing. They try to convince us that the company isn’t a direct selling or MLM company. But in my opinion, it is. And being an MLM company isn’t necessarily a bad thing; in fact, it can be great! Why? Because you have the potential to make good money by being a part of their program.
Melaleuca has been in business for over 30 years, and like most legitimate MLMs, they have stood the test of time. There’s no income ceiling when it comes to selling their products.
Now, I understand why some people might say that Melaleuca is a pyramid scheme or a scam. I’m not a fan of the MLM business model because it’s difficult for most people to succeed. It requires strong recruiting and sales skills, which not everyone possesses. As a result, many people fail and label companies like Melaleuca as scams.
However, this still doesn’t answer your question about whether Melaleuca is a scam or legitimate. Before making a judgment, there’s a lot to investigate, so keep reading…
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Is Melaleuca A Pyramid Scheme?
As I mentioned earlier, Melaleuca is not a scam. But some might still wonder if it operates as a pyramid scheme. Rest assured, Melaleuca is a legitimate business that does not engage in illegal activities. They offer genuine products, and their “executives” are paid through product sales.
What is a Pyramid Scheme?
A pyramid scheme is a business model that compensates individuals primarily for recruiting new members rather than for selling a product or service. It starts with initial promoters who recruit investors, who then recruit more investors, growing the network. The name “pyramid” aptly represents this structure, as the number of investors increases at each level.
As a Melaleuca product advocate, your role involves selling a couple of products to people you know. But if you decide to become a business builder, you take a more serious approach to selling these products.
Is Melaleuca a Pyramid Scheme in Disguise?
There has been an ongoing debate about whether Melaleuca is a disguised pyramid scheme. The company uses a multilevel advertising and marketing model, which can raise some eyebrows. However, many legitimate businesses use this type of marketing strategy, and it is not illegal.
One significant concern with Melaleuca is the requirement for consultants to purchase a starter package to join, and these kits can be quite expensive. Additionally, the business heavily relies on recruitment to expand, which may pressure consultants to constantly sign up new members.
So, is Melaleuca a pyramid scheme? The debate continues. It’s crucial to be aware of the potential risks associated with joining such a company. Just like any other business, there are disadvantages to Melaleuca MLM that I’ll disclose in my upcoming review. However, it’s important to note that having drawbacks does not automatically classify it as a scam.
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Who Owns the Melaleuca Company?
Melaleuca is a US-based company founded and led by Frank VanderSloot. VanderSloot, who is 68 years old, is not only Idaho’s wealthiest person but also the CEO of Melaleuca, with an estimated net worth of $1.9 billion.
Under VanderSloot’s leadership, Melaleuca, The Wellness Company, has consistently ranked on Inc. magazine’s list of the nation’s 500 fastest-growing privately-held companies. Founded in 1985 and headquartered in Idaho Falls, Idaho, Melaleuca is now a $780 million company specializing in nutritional, cosmetic, and personal care products.
Considering all this information, it is safe to say that Melaleuca is not a scam. However, let’s explore the rest of this review before making a final judgment.
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How Does Melaleuca Work?
Melaleuca operates as both a health and wellness e-tailer and a referral-based business. Participants, who are non-employees, join the company to purchase its products online and have them delivered to their homes or businesses. To complete the signup process, you need to connect with an existing participant and sign up under them. This existing member, now referred to as an Item Supporter, earns a commission each time their new team member makes a purchase.
The standard commission is 7%, which can accumulate quickly if you recruit multiple members. However, before you can start recruiting, you will need to make some product purchases yourself. As a Melaleuca MLM member, you need to buy a certain number of product points each month to maintain active status and receive compensation. Currently, the required point level is 50, which amounts to around $80 worth of product.
So, every month you wish to continue with Melaleuca MLM, you must place an order worth approximately $80. Interestingly, Melaleuca never uses the term MLM to describe its recruitment focus. Instead, it refers to itself as a “referral-based company” – a claim that has already been debunked. If a company provides incentives for its members to recruit others and pays them commissions for doing so, then it embodies the principles of network and multi-level advertising.
If this information feels overwhelming, you can also check out the Melaleuca review below for more details.
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How Do I Become a Melaleuca Representative?
As a new client, you have two options to register with Melaleuca MLM. You can either register through a sponsor or contact Melaleuca MLM client support directly. You can choose between a ‘Customer Membership Arrangement’ (Direct client) for $25 or an ‘Advertising Exec Agreement’ (Liked customer) for $29. The second option is suitable for those seeking an economic opportunity.
Melaleuca MLM follows a 5 × 7 compensation plan. This means you need to build a group of five members, and each of those members needs to build their leg of five members each. Unlike other MLM companies, Melaleuca ensures its representatives (you) receive a consistent 7% commission on every purchase made by down-line members, up to the 7th level. To be eligible for the commission, you must stay active by purchasing 50 monthly product points.
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Is Melaleuca Available Outside the US?
If Melaleuca were a scam, it would have been closed by the FTC and other government bodies a long time ago. However, it is not a scam. Melaleuca is available in over 15 countries worldwide.
Melaleuca operates in the following countries:
- “This company has changed my life – 23 years ago my daughter had asthma and it forced me to learn about going GREEN and Healthy Solutions…I have never looked back. Best decision for my family’s health.”
- “They make it so easy to switch where you are buying your everyday products over to Safer, More Effective, and Even More Affordable! Real Wellness is delivered right to my door! I love how non-toxic doesn’t have to cost an arm & a leg with them! I am totally addicted because the products work so well.”
There are also a few negative reviews:
- “I enjoy most of their products but don’t go to them if you ever have a problem, they have terrible customer service.”
- “They trap you into buying a set amount each month (used to be £75 monthly but likely much higher now). If you don’t order, they send you a bundle of products to the value of the set amount regardless. They also try to get you to get your friends and family to join on the pretext of creating your own business.”
Most online reviews for Melaleuca are positive, which supports my claim that it is a legitimate health and wellness/MLM company, not a scam or pyramid scheme.
Turn Your Passion into Profits
What I Like About Melaleuca
Melaleuca stands out for a few reasons:
- Good and Wide Range of Products: Melaleuca is recognized as one of the largest multi-level marketing brands globally with a vast selection.
- Longevity of the Business: Since 1985, Melaleuca has maintained its presence in the market, distinguishing it as one of the MLM businesses that has remained true to its name.
- Positive Product Reviews: The products offered by Melaleuca have garnered hundreds of positive reviews, which is a testament to their quality and impressive reputation.
What I Didn't Like About Melaleuca
While there are a few aspects of this brand that I don’t particularly like, it’s important to note that this doesn’t imply that Melaleuca is a scam. Let me go into detail about what I find concerning:
- Hidden Fees: The brand advertises a membership cost of $19 plus tax per year, but the reality is that you’ll have to pay $739 to remain in the program.
- Expensive Products: The requirement to purchase and resell products at a higher monthly price raises doubts about the model. By comparing the costs of similar products in other retail stores, you’ll understand the issue.
- Lack of Sustainable Income Potential: Achieving significant earnings with Melaleuca relies heavily on luck. Making six figures a year, especially through recruiting “executives,” is far from easy.
- Low Average Earnings: Melaleuca discloses the earnings of its Product Advocates and their progression through the ranks. Sadly, as shown in the table provided, the earnings are not substantial.
It’s essential to carefully consider these points before becoming involved with Melaleuca.
My Melaleuca MLM Review: Conclusion
Melaleuca does offer some premium quality products that people seem to appreciate. However, as a business opportunity, it is unlikely to help you quit your full-time job anytime soon.
Making suitable money with MLMs, in general, can be an uphill struggle. The only way to earn significant income from Melaleuca is by recruiting many individuals into the business and hoping they can replicate your success. But it’s important to note that achieving success will require facing numerous rejections and developing a thick skin. Therefore, I do not believe this is the optimal way to make money online.
Thanks for reading my Melaleuca review! Do you have any comments or questions? Feel free to leave them at the end of this post.
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Thanks for reading my Melaleuca MLM Review! If you have any questions, or any experiences to share then please write them in the comments below. ;).
- Visit Melaleuca’s online site.
- Navigate to the cancellation form.
- Fill out the form with the necessary details.
