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Melaleuca Business Opportunity – 4 Things To Consider Before Joining Melaleuca!

Melaleuca Business

Four Things To Know Before Starting A Melaleuca Business!

 

Frist off I want to make it clear that I am not a representative for Melaleuca. Although I have been approached several times about the Melaleuca Business opportunity from friends and acquaintances, I didn’t feel this would be a good business fit for me and you will see why below.

Not to say this wouldn’t be a perfect fit for you… Melaleuca is a great company with some very good products but in my opinion, offers a mediocre compensation plan and requires a lot of product to be sold each month.

Here are four main points to consider before joining the Melaleuca Business Opportunity.

1. Products Must Be Sold – A Lot Of Them!

2. You Must Be A Product of The Product!

3. You Must Convince People Melaleuca’s Products are Better! (even though they are)

4. Confusing Compensation Plan

The Melaleuca Business Model and Brief History

Melaleuca was founded in 1985 by Frank VanderSloot and his vision of bringing healthy, natural, environmentally safe products to consumers via word of mouth as opposed to conventional radio and television advertising has paid off quite well.

Melaleuca stresses to their Reps and on their business website the idea of Transfer Spending. Convincing people that your product is better is paramount if you are going to be successful with the Transfer Spending idea.

Consumers are going to buy certain products the traditional way and the Melaleuca business model is to convince people to purchase the same type of product at a savings. Have it shipped to the home and make a percentage by referring other customers to Melaleuca. Pretty typical of the Network Market Industry.

But why is someone going to quit using a product or products they have used for decades? First you have to convince them your product is superior. Saving 10% to 25% on a inferior product alone will not make for a long term customer. I am not saying that Melaleuca products are inferior by any stretch, it just goes back to #3 – Having to convince people first that your product is better in order for the transfer spending idea to work.

Melaleuca has a vast array of products and most are quite good! With over 300 products to choose from, ranging from household cleaners, personal care items, nutritional and pharmaceuticals, to cosmetics, wellness products and more.

The Melaleuca Business &  Compensation Plan!

Here are some basics of earning money with the Melaleuca business model and from what I have been able to gather, it goes like this. Keep in mind, this is not a full breakdown on the Melaleuca compensation plan but an overview of some of the ways you are paid.

First off as stated on Melaleuca’s website:  ” You Do Not Earn commissions or bonuses paid for recruiting reps or signing up customers”. Each commission and bonus is earned on the end sale to a consumer.

[It later states: "The Quality Customer Bonus" Once you quality enroll your first new customer for the month, you trigger your qualification to receive the QCB on all future enrollments for the month" After quality enrolling one Preferred Customer for the month, you will earn $25 for every additional Preferred Customer you quality enroll".]  But this is calculated over again each and every month.

When you refer Melaleuca to a customer, once they purchase you are paid 20% on the first 150 Product Points when they shop their first month.  It’ not clear what happens the second month and less clear when you read the next paragraph below.

“Personal Enrolled Customer Commission”: As an active Director your commissions paid on your personal customers’ Product Point purchases increased to 14% (with 8-19 personal customers) Once you have 20 customers purchasing every month you earn 20% on all Product Points generated.”

Statistically they say the average network marketer only has 7 to 10 customers purchasing their product or products at any one given time.  The key to earning 20% commissions on all Product Points is to have 20 active customers personally enrolled and buying every month. This is difficult to achieve on a consistent basis.

It seems this will require a huge customer base spending $100.00 or more every month in order to make any real money with Melaleuca, but keep in mind…

For each customer you sign up, when and if  they refer a friend, you will be paid 7% on everything they purchase as well. BUT… Your downline is limited to 7 generations deep. You can grow your business horizontally with no restrictions so that is a plus!

They also have quality customer bonuses, product introduction commissions, value/career pack and weekly Melaleuca bonuses as well. Along with a leadership development bonus.

There are all kinds of other restrictions and requirements included with what seems like a confusing compensation plan. For a complete review on the Melaleuca Business Compensation Plan here is the company website link for your review.

The Melaleuca business model does have a lot to offer someone who’s looking to have a home based business, with one BIG BUT… 

The compensation plan is very confusing, requires far too many customers shopping monthly in order to get paid a small percentage of the product sales. In order to gain customers, they must be convinced Melaleuca products are better than what they have been using for decades, which the company calls Transfer Spending.

So, if you are considering the Melaleuca company or any other product based MLM, (which what I am about to share is not a MLM) you might want to do some comparison shopping before you make Melaleuca your home.

If a compensation plan that pays everyone within your organization the same 100%  of the product points accumulated, as opposed to only 20% on the first 150 product points for shopping in their first month, which would you rather have?

In addition, retail profits of up to 30% are also realized on all product sales along with product points with this other company. The smallest commission check paid is $300, with the ability to generate $3600.00 per week, per center.  You can have unlimited business centers.

They offer true Transfer Spending with their program; whereas you can purchase the same items you have grown to love at a discount, and get paid CashBack for doing so. (just to name a few differences)

You can read all the details and make the comparison for yourself by CLICKING HERE!

In closing, I would like to make it understood that Melaleuca and the Melaleuca business plan offer great products, a solid long term business history, and top company leaders. Just know, you won’t build a huge residual income overnight. Stick with it and don’t let anyone take away your dream!

I wish you the very best in your endeavors!

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{ 8 comments… add one }

  • Richard Petrillo November 17, 2012, 8:24 am

    Hey Stephanie,

    Melaleuca is a great company with wonderful products! I agree with you, nothing happens overnight and the best line to having a successful direct sales business is to be consistent and never give up!

    Thanks for your comment and I wish you the best of luck with Melaleuca!

    RichardP
    Richard Petrillo recently posted..Lead Generation Ideas To Build Your Business – Starting Today!My Profile

  • Richard Petrillo May 16, 2012, 3:17 pm

    Exactly! That seems to be the problem with most MLM companies. People always ending up with a garage full of products.
    Thanks for your comment!

    RichardP
    Richard Petrillo recently posted..Funded Proposal vs Affiliate MarketingMy Profile

  • Nadia G May 9, 2012, 9:11 am

    I did Melaleuca and agree that the products are great. Here is the flaw. They say that you save money by buying their concentrated (cleaning) products but you have to buy $75-$100 worth of various products a month. At the end of 3 months, I was beginning to hoard these products because I didn’t use all of it. So I really wasn’t saving anything.

  • Richard Petrillo February 26, 2012, 10:35 pm

    Thanks Ross for the additional insight to the comp plan. I did include a link above to an article that explains the plan in more detail! But you are correct, to earn more you have to work more!

    RichardP

  • Stephanie February 24, 2012, 4:32 pm

    My husband and I started shopping with Melaleuca in March 2011. We love the products, so we decided to start referring friends to shop. We don’t have a lot of customers, but the monthly commission check more than pays for our shopping. I wouldn’t hesitate to tell my friends about a great restaurant or a great movie, so why wouldn’t I tell them about shopping with Melaleuca?

    Building a Melaleuca business takes time and a lot of effort. I know there’s no such thing as “overnight success”, so I’m in it for the long haul.

  • Ross January 7, 2012, 3:20 pm

    You fail to mention that the 7% commission is just the starting point. The further you grow your business, the higher that % goes up. By simply enrolling 8 customers, your % kick for personal customers (not your customers’ customers, for that always stays at 7%) goes up to 14%. Continue to grow your business further, and you make up to 20% of what your personal customers order. The whole point is long term. Gradually grow your business = Gradually increase your earnings/income. You are right in that 7% commission is not going to be a “stellar monthly paycheck,” but if you’re only earning 7% commission, it’s because you aren’t trying hard enough.

  • Richard Petrillo August 12, 2011, 6:45 am

    Hey Steve,
    Probably so but they are a very good company with some great products. With so many choices out there I personally feel that people need to take a close look at all the options before joining any opportunity.
    Thanks!
    RichardP

  • Steve Dooley August 9, 2011, 3:51 pm


    Twitter:
    Wow. I’m not really familiar with Melaluca, but it seems that there are definitely some better options when considering which network marketing company to join. Thanks for the advice.
    Steve Dooley recently posted..Sites Like Groupon Pale In Comparison – Except This One…My Profile

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