Melaleuca MLM Review

Hey there Sea Changers, and welcome back to my series of MLM reviews. Today we are going to a take look into a massive network marketing centred operation with an environmentally friendly edge with my Melaleuca MLM Review. This is a company that has its finger in the pie of all of the usual MLM niche products in the one place and does so from a green perspective. So, what it the Melaleuca MLM all about? Let’s check it out below…

Melaleuca MLM Review - Stripe 1

What is MLM?

Multi-level marketing (MLM) programs are the traditional mainstay of the ‘party plan’ world of products such as Tupperware, Mary Kay and Amway etc. and, of course within the beauty/cosmetics, supplements and essential oils markets. It is not as prevalent within the home care industry (even though its origins are here) but as MLMs have become more popular in recent times – mainly due to the fact that much of the sales and marketing is now being managed online – companies in other niches are starting to get in on the action.

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Melaleuca MLM Review

The ‘multi level’ aspects of MLM come from its hierarchical nature in which you make commissions based not only on those that you sell to, but also the sales of those whom you ‘sign’ into membership arrangements as well.

In short, the process works as follows:

  1. You join the program, either via referral from another person (known as your up line) or directly through their website.
  2. You promote the products of the company via parties, workshops or online.
  3. As you make sales, you offer incentives to your customers to sign up as a member of the program (there are different names for this but they all mean the same thing).
  4. That new member is then placed ‘underneath’ you in a hierarchical arrangement (known as your down line).
  5. You, and a number of levels of your up line, then gain extra commissions for everything they sell as well.
  6. If they manage to refer their customers into memberships, they also become a member of your down line allowing you to make up line commissions as well.

The number of levels of your up and down lines will vary depending on the program you have joined. Commission rates will also change as your down line grows or contracts and many will also offer other incentives such as total company sales percentages and/or access to membership prizes as your own business grows.

Who are Melaleuca?

Melaleuca MLM Review - Home

Melaleuca was founded by Frank L. VanderSloot in Idaho Falls, Idaho in September 1985. Since then, it has grown to a USD $2 Billion dollar a year enterprise servicing 19 countries worldwide. With a mission “to enhance the lives of those we touch by helping people reach their goals”, Melaleuca has evolved into what appears at first glance to be a stereotypical network marketing company in every aspect of it sales operations.

On the non-sales side however, Melaleuca also prides itself on its green, environmentally friendly operations allowing members to utilise and sell non-toxic products that allow clean living without the dangers of harsh, caustic chemicals. It is both the manufacturer and seller of its products featuring the following chemical free attributes:

  • Plant-derived ingredients like citric acid to remove hard water stains.
  • Enzymes to clean dishes.
  • Biodegradable ingredients to gently release tough stains from laundry.

What do they Sell?

Melaleuca is definitely one of the larger MLM companies I have seen with an offering of over 400 products that it claims are “superior in a very clear and relevant way”. As mentioned above, they have every major MLM niche covered with a catalogue of products including:

Nutrition

  • Vitamins and Supplements
    • Multivitamins
    • Specialty Supplements
    • Peak Performance Packs
  • Food And Weight Management
    • Weight Management
    • Sports Nutrition
    • Fiber
    • Healthy Snacking
    • Beverages
    • Gum & Mints
    • Sports Nutrition

Medicine

  • Dry Skin Therapy
  • Cold, Flu, & Allergy
  • Pain & Fever Relief
  • First Aid
  • Sun Care
  • Acne Treatment

Beauty

  • Skin Care
  • Color Cosmetics
  • Hair Care
  • Fragrance
  • StyleSetters: Seasonal Colors

Household

  • Cleaning and Laundry
    • Household Cleaners
    • Dishwashing
    • Laundry
  • Home Fragrances
    • Plug in Scented Oils
    • Wax Melts / Warmers
    • Soy Candles
    • Air Fresheners
    • Fabric Fresheners

Pet Care

  • Treats
  • Jerky

Bath and Body

  • Scent of the Season
  • Bath & Shower
  • Body & Skin Care
  • Hair Care
  • Facial Care
  • Hand Soaps & Sanitizers
  • Dental Care
  • Kid’s

Essential Oils

  • Single Oils
  • Oil Blends
  • Carrier Oils
  • Accessories

Melaleuca MLM Review - Products 2

Note: Prices are not displayed on the website and you cannot purchase without becoming a member of the program.

MLM Program outline

The Melaleuca MLM program calls their members ‘Marketing Executives’ who are part of what at first look appears a quite complicated program focused on ‘leadership points’ and recruitment. It does however contain most of the common retail and downline commission structures and a good number of bonus options relative to many MLM programs as well. It takes a bit of searching to find it but their compensation plan is available on their website so here are the basics as I have found them…

Base Commission rate: 7% to 20% (dependent upon number of ‘active’ customers maintained)

Down line commission rates: 7% to 7 generations (dependent upon rank)

Minimum monthly spend to qualify for commissions

To qualify for downline commissions, a Marketing Executive is required to generate revenue of at least 29 Product Points per month. This can be made up of both personal and customer purchases.

Payment terms: Monthly.

Application required?: Yes, Application form on website.

Purchase requirements to join: No

Starter packs are available at time of enrollment however these are not mandatory. Options include:

Home Conversion Pack – 44 products, an assortment of spray bottles and accessories, helpful business-building and product literature, as well as valuable coupons worth hundreds of dollars. – USD $299 (140 Pts)

Value Pack – 29 products, an assortment of spray bottles and accessories, helpful business-building and product literature, as well as valuable coupons worth hundreds of dollars. – USD $199 (100pts)

Note: pack costs are not available on the website (unless you are a member) so the pricing and points allocations above are those that I have found on other pages belonging to an actual Melaleuca Marketing Executive.

Melaleuca MLM Review - Home conversion pack

Marketing materials provided: As per starter kit above.

Product Points

As with most MLM programs, rankings and commissions are determined by the total Product Points generated by the Marketing Executive and their down line within a calendar month with points assigned to each product. These point allocations generally range from 50 to 100% of the retail price of each product (before tax and shipping) and vary from item to item and currency of sale.

In the case of the Melaleuca MLM program, points appear calculated at 46 – 50% of the USD retail sales price meaning downline commissions are paid on 46 – 50% of that retail price only. This means that if a product (such as a value pack above) is sold for $199 with a Product Point value of 100, then payments are calculated on $100 of the sale price not the full $199. Hence, then if a downline commission rate is 7% then the payment to the Marketing Executive would total $7 (i.e. 7% of $100).

Note: Again, product prices and point are not readily available on the website hence the above explanation has been calculated based on value pack costs and point allocations found on within my research (please comment below if this is inaccurate in the case of the Melaleuca program).

Leadership Points

Leadership Points are another allocation utilized within this program as a measurement of a Marketing Executive’s contribution toward helping others reach their goals. Leadership Points qualify Marketing Executives for certain Statuses and some of the commissions and bonuses outlined below within this post. Leadership points are earned as follows:

Melaleuca MLM Review - Leadership Points

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How can I get paid?

Ok, so from what I can garner from the compensation plan, there are 10 ways in which Marketing Executives can make money when they promote and sell Melaleuca products. I have to admit that these did take a little while for me to get my head around due to the allocation of points in a number of areas but at the end of the day there are number of commissions and a few of the extra bonuses found in many other MLM arrangements. The 10 payment options for the Melaleuca MLM program are outlined as follows:

1. Home Conversion Commission

This is the first of a number of options within the Melaleuca program designed to entice Marketing Executives to recruit new customers or members. When a new customer is enrolled, a one time commission is earned based on their purchases within the first month as follows:

  • $100 if the customer purchases a Home Conversion Pack.
  • $50 if the customer purchases a Value Pack.
  • $25 if the customer does not purchase a pack but does purchase at least 35 Product Points of product.

Marketing Executives must have generated at least 29 Product Points within the current calendar month to qualify for the Home Conversion Commission and all further options below.

2. Personal Customer Commissions

These are the base commissions earned by the general day to day retail sales that Marketing Executives can generate from personally enrolled active customers. There are three tiers of personal commissions based on number of active customers enrolled as follows:

Melaleuca MLM Review - Personal Customer Commissions

An Active Customer is a customer who purchases at least 29 Product Points during the calendar month.

3. Organisation Commissions

Organisation Commissions are a version of traditional MLM downline commissions where Marketing Executives earn 7% of

Product Points on purchases by customers who were enrolled by others within their down lines. Commission depth is dependent upon the “Commission Rate” assigned to the Marketing Executive and based on rank as follows:

  • Product Advocates are paid on 2 generations.
  • Product Advocates 2 are paid on 3 generations.
  • Product Advocates 3 are paid on 4 generations.
  • Directors and above are paid on 7 generations.

4. Advancement Bonus

Now we move away from the commission style payments and into the bonus options starting with the Advancement bonus. This is a common MLM payment option in that Marketing Executives are rewarded each time they reach a new rank.

For payment amounts – see Pacesetter Bonus below…

5. Pacesetter Bonus

Marketing Executives who purchase either a Value or Home Conversion Pack in their first full month with Melaleuca will qualify for the Pacesetter Bonus. The Pacesetter Bonus pays double the Advancement Bonus each time they advance through the Director and Senior Director ranks within a specific timeline. Payments and timelines for the Advancement and Pacesetter bonuses are as follows:

Melaleuca MLM Review - Adv and Pacesetter bonus

True PEG (Personal Enrollee Group Volume) = The total Organisation Volume of a Marketing Executive’s personal enrollees in any given month.

6. Mentoring Bonus

The Mentoring Bonus is another common MLM payment offering where Marketing Executives can earn payments when their personal enrollees advance from one Status to the next. In this case, Marketing Executives earn:

  • An amount equal to the Advancement or Pacesetter Bonus paid to their advancing personally sponsored Directors through to the Status of Senior Director.
  • A set amount ranging from $2,200 to $5,000 for advancing personally sponsored Senior Directors 2 through the Status of Executive Director.

To qualify for the Mentoring Bonus, Marketing Executives must fulfil the following requirements:

  1. Commission Rate must be equal to or higher than that of their advancing personally sponsored Executives each time they advance in Status.
  2. Produce the minimum three-month average Leadership Points stated below:

Melaleuca MLM Review - Mentoring Bonus

7. Core Mentoring Bonus

Marketing Executives who reach the rank of Directors 3 and above can qualify to earn the Core Mentoring Bonus. This is paid each time an enrollee of one of their personal enrollees’ advance to Director and above (i.e. a member of the Marketing Executive’s down line that they have not personally introduced). Payment is in the amount equal to 100% of the Advancement Bonus on Directors through Senior Directors and a set amount ranging from $1,100 to $2,500 on Senior Directors 2 through Executive Directors.

To qualify for the Core Mentoring Bonus, Marketing Executives must fulfil the following requirements:

  1. Minimum Commission Rate of Director 3.
  2. Commission Rate must be equal to or higher than that of the advancing Marketing Executive who qualifies them for the Core Mentoring Bonus.
  3. Produce the minimum three-month average Leadership Points stated below:

Melaleuca MLM Review - Core Mentoring Bonus

8. Leadership Growth Bonus

The Leadership Growth Bonus is earned when a Marketing Executive meets the following criteria:

  1. Reach Director 4 status or above.
  2. Have new growth in their down line over a two-month period.
  3. Produce the minimum three-month average Leadership Points stated below.

Leadership point requirements and payment amounts are as follows:

Melaleuca MLM Review - Core Mentoring Bonus

9. Monthly Car Bonus

The Monthly Car Bonus is another option commonly utilised within MLM programs to reward those who reach the upper ranks within the program. In this case, payments towards a new car/s are made to the qualifying Marketing Executive as follows:

  • Senior Director – $800 per month
  • Executive Director – $2000 per month
  • National Director – $2200 per month
  • Corporate Director – $2500 per month

10. 20/20 Bonus

The 20/20 bonus rewards Marketing Executives who achieve 20 active personally enrolled Preferred Customers within 4 months after the month of enrollment with a one-time $700 bonus. And as per the Personal Customer Commissions above, as long as at least 20 Active Personally Enrolled Customers are maintained in a calendar month, a 20% commission on personal enrollees is paid.

Ranking structure

Melaleuca, as with most MLM programs, uses ranking structures on which to base commission payments and other bonuses upon. Rankings for the Melaleuca MLM program are as follows (note personal and team sales qualification targets as well):

Melaleuca MLM Review - Rank 1

Melaleuca MLM Review - Rank 2

Again, as is common with almost all MLM programs, rank progression is determined by both the number of members within the Marketing Executive’s down line, and the total sales made by those members per month. Ranks can rise and fall based on the ability (or dis-ability) to reach the required member and sales targets.

What is good about it?

So, after a good look around the site and looking at all the options I could find, I do like the following:

  • Large array of products.
  • Eco friendly products are a popular market.
  • Large array of commission and bonus options.

What is no so good about it?

There are also some things to be aware of including:

  • The Compensation Plan, once located, is a little confusing.
  • Program is heavily centred on recruitment.
  • Products can only be purchased by members of the program.
  • Pricing not available on open pages of website.

How much can you make?

Melaleuca does provide an income disclosure statement on its website which clearly outlines that like most MLM programs, the percentage of members making the upper rank levels – and hence earning a living – is very low (less than 1%).

See the full income disclosure statement here.

Melaleuca MLM Review - Stripe 2

My final thoughts

Look, MLM is not an easy platform to make money in and there is not much that I have seen here to put this program above the many others I have seen. The entire website is clearly geared towards its network marketing sales strategy with purchases only available to those who join the program which is heavily centered upon recruitment. That said, there are plenty of commission and bonus payment options available so if you are passionate about eco-friendly products and companies and have a large customer list at your disposal then this one might just fit your needs.

Once you have joined, there are not the usual financial pressures of needing to make minimum personal purchases in order to qualify for commissions as long as you can make them within your down line. Although from what I can see, I think if you are going to succeed within this MLM program, you will need to ‘walk the walk’ in terms of using their products and chemical free living. You may also need to bump up your personal purchase quota if customer sales alone are not enough for you to remain ‘Active’ and qualify for commissions and/or discounts within a particular month.

I was unable to locate any negative reviews in terms of non-payment etc. although there were some negative comments about the quality of customer service and the MLM program itself – although it was not really anything that is uncommon in regards to MLM programs of this size.

Conclusion

So there you have it, my honest review and appraisal of the Melaleuca MLM program. I hope it has been of assistance but as usual, if you have any questions or experience with this program please do not hesitate to reach out by commenting below – especially if any of my information is inaccurate.

Are there any other programs you have been looking at but want to know more about? If so, please comment below and I will do my best to get some details for you.

Do you want further assistance with any of the above or need help to build your own MLM based website?

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Until next time

Have fun

Paul

Note: If you make a purchase from this page, there is a very good chance that I make a commission from it – these commissions do not increase your sale price.

Melaleuca MLM Program

0.00
7

Clarity of Information

6.0/10

Commission Structure

6.0/10

Cost to Enter

8.0/10

Ongoing Cost Requirements

8.0/10

Bonus Structure

7.0/10

Pros

  • Large array of products.
  • Eco friendly products are a popular market.
  • Large array of commission and bonus options.

Cons

  • The Compensation Plan is a little confusing.
  • Program is heavily centred on recruitment.
  • Products can only be purchased by members of the program.
  • Pricing not available on open pages of website.

Hey there, my name is Paul and I am the owner and founder of Make That Sea Change.  I spent 30 years in a cubicle working the 9 to 5 grind and just wanted to live at the beach.  I was lucky enough to achieve that with the help of my wife and our new Pilates studio.

Then I decided to help fund my new sea change with some affiliate marketing.  I joined Wealthy Affiliate, and as they say, the rest is history.

Let me know how I can help you fund your sea change today!

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Note: This is an unbiased review as I am not a member of the any of the programs listed here (and hence make no commissions from any of the links included within this post). The reason for this is that I prefer to write these posts based on what a newbie would be seeing if they were interested in joining – that way I feel I can make a better judgment on what it is that these companies are offering within their programs.

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