Melaleuca Business Review

Posted by Fenix Skai

Background:

In 1985 Frank VanderSloot was appointed CEO of “Oil of Melaleuca”, a MLM company.  However, he hated MLM’s, closed down Oil of Melaleuca and started a new company, simply called Melaleuca.  Rather than operating a traditional multi-level marketing, the products can be bought directly from the company through their referral plan.

Products:

The company manufactures nutritional products and a line of cleaning products they call “bleach free”, without harsh chemicals. Their business model is based off of a referral program, where a referral generates cash based on a percentage of what the referral spends.  (i.e. the more they like the products the bigger the referral check) Melaleuca has a high quality product line with great value, low monthly purchase requirements, and high reorder rate, making Melaleuca's business opportunity among the most lucrative in the industry. Melaleuca also has another part of their program called the Preferred Customer Program where customers can receive a 40% discount for committing to buy about $50+ per month from the company.

Pros:

• Company has quality products that receive few complaints.

• Products are eco-friendly and appeal to consumers everywhere.

• CEO Vandersloot has an excellent reputation as a businessman

• No multi-level marketing means distributors strive more for quality than quanity

• There are no buy-ins up front to work as a distributor

Cons:

• Products are overpriced compared to store-brought brands.

• Although not a MLM, less than 2% of the distributors make enough to supplant their full-time income.

• Compensation is based on referrals, taking power away from distributors to build a true residual business

• Not a ground floor opportunity since it’s 15 years old

• Distributors must commit to buying a certain amount of product each month

Melaleuca Business Rating (High Score is 40):

FENIX	5
PATRICK	5
CHARLES	5
DANNY	5

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Conclusion:

In conclusion, Melaleuca is a decent opportunity for those that want to generate an extra $100+ per month in spending cash.  It does not appear to be a legitimate business that will generate 5-figure incomes per month (or even 4-figure) like some of its counterparts.  It has been around for a while, thus you know the company is solid and not folding anytime soon.  Overall, I would say Melaleuca is a great allowance vehicle, but not a true business opportunity.