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

by Richard Petrillo on August 9, 2011

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, but lets contrast that with a service oriented Network Marketing Business.

A lot of service oriented direct sales companies don’t require a monthly auto-ship and usually have lower start up fees. Regardless of what type of business you’re involved with, the one thing every business owner needs help with is personal development, time management, and leadership skills.

If you are considering the Melaleuca Company or any other product based MLM, you might want to look at an interesting company that has emerged.  It is taking advantage of three, 1 billion dollars industries at the same time. They have combined Personal Development, with the Mobile App industry and incorporated it with Direct Sales.  You can learn more about it 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!

Connect with me on Facebook and Follow me on Twitter

P.S. If you’ve been struggling in your Network Marketing Business with Generating Leads, Time Management, and Leadership Skills… Well, Now There’s a Mobile App For That!

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{ 10 comments… read them below or add one }

Richard Petrillo November 17, 2012 at 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
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Richard Petrillo May 16, 2012 at 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

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Nadia G May 9, 2012 at 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.

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Richard Petrillo March 14, 2012 at 11:48 pm

Hello Judith,

Thanks for taking the time to express your opinion.

You make a valid point regarding long term. Yes companies do come and go but keep in mind, Melaleuca was once an infant of only 3 years in age. Every company has to start someplace.

Like I stated, they are an excellent company with very good products.
I wasn’t patting Melaleuca on the back either, I was stating what I believe to be a fact.

I’ve spoken to many Melaleuca reps and they have all expressed the same concern, I am sure you would agree. Getting someone to switch from what they have been accustomed to using for decades is your most difficult task.

I care about the plant as much as the next person! Your analogy of me trying to make money on the internet is “Discouraging people to help our plant Go Green”.

Wow, Really? That’s a pretty tough sell… So that would put every company who is not selling “Green” products into the same category?

I would also like to point out, in the very beginning of the article I stated…”I didn’t feel this would be a good “Business” fit for me.

If you were offended by my making a business comparison of these two MLM models… Well, I guess you’re entitled to your opinion.

I think anyone looking for an opportunity to start their own home based business should be aware of all the options.

For those who take the time to watch the videos, I am certain they will see the distinct difference in building a customer base and the benefit this young company has to offer.

Thanks again!
RichardP

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Judith March 14, 2012 at 1:48 pm

I find it pretty redundant that you use a very solid fortune 500 company to up your own company that just started not to long ago,,

It’s a fact that companies on the internet come and go like crazy, if a company doesn’t last over 5 years on the internet it will be bound to failure,

So you don’t even know if this new company has it made yet,,, this is all very miss leading as far as I’m concerned and I’m not impressed by your patting Melaleuca on the back while doing so,

I agree with Ross that the whole point is long term.

My biggest beliefs on Melaleuca are living in a safer environment which gives your immune system a chance to rest while being in your home.

Also by using Melaleuca products you are contributing to bettering our environment which is an even bigger plus with all the world disasters going on, we need to come together and pour tons of Melaleuca oil into our Lakes, Rivers and Oceans to get an graceful impact on our planet.

So while you are trying to make money on the internet, you are acctually discouraging people to help our planet Go Green.

Very very sad situation =(

No Pund Intended Richard
Just a concerned citizen who appreciate Our Planet and Well Being

Love Your Planet as Much as You Love Yourself
You Will Find a Happy Medium
Judith

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Richard Petrillo February 26, 2012 at 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

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Stephanie February 24, 2012 at 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.

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Ross January 7, 2012 at 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.

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Richard Petrillo August 12, 2011 at 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

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Steve Dooley August 9, 2011 at 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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