If you want to know whether Melaleuca is an MLM, whether it’s scam or legit and other important FAQs, this article is perfect for you.
It provides helpful answers to these and many other FAQs.
What is Melaleuca?
Melaleuca is a company founded in 1985 by Frank L. VanderSloot.
It sells various types of nutritional supplements, personal care products, and cleaning supplies.
The mission of this company is to enhance the lives of people by helping them reach their goals.
Melaleuca products come with a natural formula that is sustainable to the environment.
This company, also known as “The Wellness Company” is based in Idaho, USA but it serves users and members from all over the world.
Melaleuca also sells eco-friendly wellness products.
You will find varieties of products offered to customers.
Melaleuca has a business model that is similar to multilevel marketing. However, this company still claims that it is not an MLM or direct sales company.
If you are interested in knowing whether Melaleuca is an MLM or not, then you will find answers in this post.
In the rest of this post, you will get find vital details about Melaleuca and its products.
You will also get to know of answers to the most frequently asked questions about Melaleuca.
What are Melaleuca Products?
Melaleuca offers products that are safe, effective, and affordable to users.
The products are science-backed formulas and made with natural ingredients.
Also, the site reveals that “every nutrition, personal care, home cleaning, and cosmetics product has been developed and manufactured to stand out from the competition.”
There are more than 400 products sold by members of this company.
Melaceula’s products are provided under the following categories:
- Nutrition – Vitamins, supplements, food, weight loss, hot beverages.
- Medicines – Dry skin therapy, Cold & pain Relief, Suncare, acne care, allergy, etc.
- Beauty – Skincare, cosmetics, haircare, Fragrances, nails, etc.
- Household – Cleaning detergents, laundry, and pet care.
- Bath & Body – Bath & shower, Facial, skincare, hand soap & sanitizers dental care, hair care, etc.
- Essentials oils – Single oils, oil blends, carrier oil, etc.
So, Melaleuca sells natural and eco-friendly cleaning, skincare, and health products.
The Best Melaleuca of Products
The following is a list of the bestselling Melaleuca products as highlighted on their website:
- Peak Performance Nutrition Pack
- Renew® Intensive Skin Therapy lotion
- MelaPower® 9x Laundry Detergent
- Diamond Brite® Automatic Dishwasher Detergent
- Tub & Tile™ 12x Bathroom Cleaner
- Lemon Brite® Hand Dishwashing Liquid
- Sun Valley® Hand Wash
- Luxury Bath Bars
- Florify® Daily Probiotic
- Sol-U-Guard Botanical® 2x Disinfectant
- Safe & Mighty™ Toilet Bowl Cleaner
- FiberWise® Drink
What is an MLM?
MLM is short for multilevel marketing.
A multilevel marketing company employs a network of independent salespeople who sell products directly to people in their community.
These salespeople earn income based on their sales, as well as the sales of people they recruit to work for the company.
Investopedia describes it as “a strategy some direct sales companies use to encourage existing distributors to recruit new distributors who are paid a percentage of their recruits’ sales. The recruits are the distributor’s “downline.”
Distributors also make money through direct sales of products to customers.
Is Melaleuca an MLM?
The business model of Melaleuca is similar to an MLM company.
However, they still deny that to the public.
The company and its advocates are economic with the truth as they have an obsession about not wanting to call Melaleuca an MLM.
I believe that Melaleuca is an MLM.
Reasons Why Melaleuca Is An MLM
Here are some reasons to buttress my assertion:
You join Melaleuca through a sponsor, referrer, or team leader
Since Melaleuca doesn’t advertise, it depends on its customers to refer other customers.
You can join as a customer to buy Melaleuca products, or you can join to take advantage of its money-making opportunities.
The site reveals that to become a Melaleuca customer, you must contact the person who referred you to the site.
However, if you found this site on your own or don’t remember who referred you, then you can call a phone number indicated on the site for additional information.
Still, on membership, you can be a preferred customer or a direct customer.
This is a customer that commits to ordering a minimum of 35 Product Points each calendar month.
When you join Melaleuca as a preferred member you are required to order a minimum of 35 to 75 Product Points per month.
He will receive a 30-50% discount off regular prices.
Also, he is eligible to earn Loyalty Shopping Dollars once he becomes a Lifetime VIP Member and has access to several other membership perks at Melaleuca
This is a customer who has no monthly commitment.
He pays a regular price for Melaleuca products and has limited Melaleuca benefits.
You can join Melaleuca to sell its products and build a Melaleuca business
You get paid commissions when you recruit people, build teams, and so on.
You also earn a commission or get paid when you market Melaleuca products.
The amount of commission you earn is based on your level and downline.
This is a typical MLM feature. If you recruit someone into your scheme, he becomes your downline.
If your downline recruits other people, his downline will be under you to form a pyramid.
Melaleuca has many levels of selling products.
The MELALEUCA 2020 ANNUAL INCOME STATISTICSs report highlights the different levels as:
- Product Advocates
- Business Builder (Director 1-2)
- Director 3-9
- Senior Director
- Executive Director
- National Director
- Corporate Director
The above levels are listed from the bottom to the top. Product Advocates are the base level while Corporate Director is the top level.
Like most MLMs, Melaleuca members are rabid advocates and have almost a cult-like mentality
They are very passionate about distributing the product and earning a commission.
Melaleuca offers compensation plans to its members
The compensation plans include different types of commissions based on the level.
There are about 11 methods of compensation earnings for Melaleuca members. The higher your rank, the more money you’ll get.
Also See: Best Hobbies To Make Money From.
Melaleuca’s MLM Compensation Plans
These compensation methods are explained below:
1. Product Introduction Commission
You earn 27% commission off your customer’s first 150 points when they shop in their first month. If your downline’s downline buys, then you earn 20%.
2. The Quality Customer Bonus
This is a recruitment bonus you may earn for the month. To activate the bonus, you must recruit your first downline for the month. Then you will get a $25 bonus from all your next newly-recruited downlines.
3. Personal Enrolled Customer Commission
You get commissions from people that you recruit.
The more people you recruit, the more commissions you’ll get.
The enrollment commissions are highlighted below:
- If you recruit 1-7 downlines – You’ll get 7% from their purchases
- If you recruit 8-19 downlines – You’ll get 14% from their purchases
- If you recruit at least 20 downlines – You’ll get 20% from their purchases
4. Organization Commissions
These are 7% monthly commissions you get for the first 150 points purchased by your downline.
5. Value/Career Pack Commission
This is the commission you get if your customer purchases the value pack in the first 2 months.
The commission value is $30. Also, you will receive $50 if your customer is to buy the career pack.
6. One-Time Advancement Bonuses
These are bonuses you receive for advancements in the director levels.
When you climb up ranking to Director Level or above, you get $100 for the first time. As you gain more levels higher than that, you earn more.
7. Advancement Bonus Payout
This bonus works the same as the One-Time Advancement Bonuses. However, you will take advantage of it if you maintain your high retention rate of at least 90% and keep on fighting.
The bonus will be paid 1/3 in the same month of your advancement, another 1/3 the next month, and the rest in the month after that.
8. Pacesetter Director Bonuses
This is a bonus you get when recruiting a new downline who purchases a Value or Career pack AND becomes a director within the first 2 months of his or her joining.
9. The Leadership Development Bonus
This is 50% of the One-time Advancement bonus. It is a bonus you get for helping your downline reach a director status.
10. Director Development Incentive
This is an incentive that allows you to save some money while maintaining your Leadership status. You don’t get any cash from here but the requirements are waived.
11. Monthly Car Bonus
When you reach the Senior Director level, you can get monthly payments for a car.
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As this article has shown, the business model of Melaleuca is similar to that of an MLM. The company sells its products through people. It pays compensations and bonuses for performers.
Customers earn good discounts and incentives for buying a specific number of products within a specified period.
Also, Melaleuca offers members the opportunity to sell products and run their businesses. They can gain levels and earn more.
All of these and more are features of a multilevel marketing company.
So, if you are asking the question of whether Melaleuca is an MLM? I make it bold to stay that it is.
The details shared above have provided answers to the frequently asked questions about Melaleuca.