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.
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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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Turn Your Passion into Profits
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:
- United States
- Canada
- Mexico
- Puerto Rico
- United Kingdom
- Ireland
- Netherlands
- Germany
- Austria
- Poland
- China
- Singapore
- Malaysia
- Japan
- South Korea
- Hong Kong
- Taiwan
- Australia
- New Zealand
Although its primary business focuses on the United States and Canada, international sales contribute 45 percent of its revenues.
In the upcoming sections of my Melaleuca review, I will explain how you can earn money and the potential income you can achieve through this MLM.
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How Can You Make Money With Melaleuca?
As mentioned earlier, the commission earned with Melaleuca MLM is determined by the product points acquired by your downline. Each Melaleuca item is assigned a point value. Whenever customers you refer purchase products, you earn a commission based on the point value of their purchase. To receive the necessary commission, you must also purchase at least 50 points worth of product each month. So, while seeking a business opportunity, you are also a mandatory consumer.
Some individuals may claim that Melaleuca MLM is a scam for this reason… But it’s not, really. The product points ensure that you receive the same commission regardless of the customer’s payment. For instance, even customers signing up for a monthly supply of Melaleuca will qualify for the ‘preferred member rate’. Despite receiving a discount, your compensation remains unchanged.
The compensation amount is calculated based on a combination of the purchased product quantity and the number of customers personally enrolled by you. But how much exactly can you earn? Continue reading my Melaleuca review…
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How Much Commission Can You Make With Melaleuca?
According to the stats, Melaleuca MLM representatives who reached the status of Senior Director and above earned an average yearly income of $67,600. The highest revenue earned that year was $278,200. However, at the start of 2021, 99.58% of ‘clients’ gained less than $32,000 in payment from Melaleuca. In other words, only 0.42%, or 1 in 238, earned a full-time income.
So, does this mean that Melaleuca is a scam? Not really. Like all MLMs, Melaleuca provides explanations for these results. They claim that “the majority that sign up are just curious about being customers” and that “extremely few decide to construct a company.” While these declarations could be true, they might also be an effort to spin the facts and make Melaleuca sound too good to be true.
Giving Melaleuca MLM the benefit of the doubt, let’s presume that 66% of active members in 2016 only signed up to be clients. With this change, we see that of those who joined Melaleuca with the intention of more than just being consumers, only 1.23% made a full-time income. That’s not very encouraging…
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How Much Does Melaleuca Cost Per Month?
Melaleuca’s MLM membership costs $19 plus tax per year. However, there’s more to the membership fee than just the $19. You must accumulate a minimum of 50 product points each month to remain in the program. Some members claim that the products only cost $50, but a more accurate estimate is around $60, amounting to $720 for the products alone. Thus, at $739 per year, the total cost goes well beyond the initial $19.
This discrepancy in transparency raises concerns about Melaleuca’s honesty and trustworthiness. However, labelling Melaleuca as a scam solely based on this would be premature.
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How To Get Out Of Melaleuca?
Some people may believe that Melaleuca is a scam. If you are one of them, here are the steps you can take to cancel your membership and part ways with the company:
- Call Melaleuca’s Customer Support:
- Provide your member identification number.
- Explain the reason for canceling your membership.
- If calling doesn’t work, you have an alternative option:
- Visit Melaleuca’s online site.
- Navigate to the cancellation form.
- Fill out the form with the necessary details.
The cancellation form will include the following information:
- Your complete name and your sponsor’s name.
- The address to which your products will be delivered.
- Your contact number.
- The business kit number.
- A personal message detailing your reasons for wanting to cancel your account. If your membership is less than 120 days old, you can also request a refund of your enrolment fee.
By following these steps, you can cancel your membership with Melaleuca.
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What Products Do Melaleuca Offer?
The company offers a variety of natural, eco-friendly cleaning, skincare, and health products.
Their extensive range includes:
- Shower cleaner
- Toothpaste
- Furniture polish
- Laundry stain remover
- Tea tree oil
- Shampoo
- Lip balm
- Vitamins
- Fiber
- Tub & tile cleaner
- …and many more!
You can purchase Melaleuca products on Amazon (not an affiliate link) from their Amazon store.
Are Melaleuca Products Legit?
Melaleuca products are considered legitimate. The company has a consumer rating of 4.54 stars based on 343 reviews, indicating that most customers are satisfied with their purchases.
Customers often mention customer service, cleaning products, and peak performance as reasons for their satisfaction. Melaleuca ranks 6th among Alternative Medicine sites. Below is a review from one of the many happy customers…
Is Melaleuca Natural?
ConsumerGoods.com states that Melaleuca products are legitimate and safe. The owner emphasises that many companies engage in “greenwashing” or “green screening” to cater to the demand for environmentally responsible products, rather than addressing the underlying issues. In contrast, Melaleuca chooses to use natural, sustainable ingredients in its products, even if it is not the most profitable option for the company.
Is Melaleuca FDA Approved?
Melaleuca manufactures the vast majority of its products at multiple facilities in Idaho Falls, ID, and Knoxville, TN. In addition, Melaleuca has manufacturing facilities in China specifically for products sold in Asia. Moreover, as an FDA-approved manufacturer of over-the-counter pharmaceuticals, Melaleuca ensures the safety of its products.
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Do I Recommend Melaleuca MLM?
I don’t recommend Melaleuca MLM if you are looking for a serious money-making opportunity. Compared to other business models (check out my #1 recommendation), it doesn’t seem like a great opportunity. However, if you decide to give it a try, remember this…
Companies are like human beings—they always have their flaws. It’s important to understand these weaknesses to determine if you can work around them or if you should avoid this business altogether. I often see people getting defensive when anything negative is said about their beloved business. But I believe it’s worse to present a business as perfect, only for you to later discover the truth after joining. This leads to unhappy customers and representatives because you weren’t completely honest with them about the pros and cons of the business.
So, as you go through the disadvantages I’ve identified, keep in mind that it’s not an indictment. These are just things people have complained about, for better or worse.
Melaleuca Reviews From Customers
To determine if Melaleuca is a scam, it’s beneficial to read reviews from other people. On Trustpilot, there are 510 reviews, and the company has earned a respectable 3.4 stars. This rating is higher than many other comparable MLMs, which typically range from 0.5 to 2.5 stars. Additionally, on SiteJabber.com, they have an impressive 4.5 rating based on 356 reviews.
Let’s begin by exploring some positive reviews of Melaleuca MLM. Here are a few examples:
- “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. ;).
