Is Melaleuca a Pyramid Scheme or Good Business Opportunity?

Melaleuca is a multi level marketing company established in 1985.

As this company specializes in promoting health and wellness products, you may have stumbled on this page because a family member or friend recommended you to join and referred to it as being a good business opportunity.

The truth of the matter is that you have been presented with this opportunity by someone you know because the best chance to earn an income within Melaleuca comes from recruiting others to join.

That fact leads to all MLM companies being labeled as pyramid schemes, but I will not label Melaleuca as such. That is due to the fact that it is possible to make an income from selling their products.

So to know whether or not this business opportunity is right for you, this post will provide full details so you can know what Melaleuca is about and it has to offer. I must share the fact that I am in no way associated with the company and I am in a position to share this review with you because I have past experience with another MLM company called World Ventures.

As I have strived to make a passive income in the past within that MLM company and other past business failures, I have found success with internet marketing which is the best way to go about marketing products in general.

MLM companies will turn you into that annoying friend that harasses everyone you come across to join or buy your products.

It’s a known fact that there is a low success rate for members within Multi-Level Marketing Businesses and if you consider joining it would be in your best interest to learn everything you can regarding marketing online to reach a wider audience instead of being limited to the people in your circle.

If you want to learn how to make money online for the best chance of establishing a passive income and live a more free lifestyle, subscribe and get weekly content and a 7-day course for making money online.

Now it’s time to get to the review of Melaleuca and see if it’s the right opportunity for you.

Melaleuca Review

Based in Idaho Falls, ID, Melaleuca was founded by Frank L. VanderSloot.

While he claims that the business model was set up as a way for people to make a supplemental income, according to the US Federal Trade Commission a study revealed that only fewer than 0.29% of Melaleuca distributors make any profit and more than 99% of distributors lost money.

The business model of multi-level marketing companies altogether is not set up for a majority of people to be successful.

While it may be a struggle to make a decent income by joining MelaLeuca, Frank is definitely enjoying the fruits of his labor, or maybe yours, as he was listed by Forbes in 2017 of being the richest person in Idaho and the 302nd wealthiest American with a net worth of $2.7 billion.

Membership

There are two different types of memberships for joining MelaLeuca. While it may seem cheap to join there are things to consider which will be detailed below.

Direct Customer Membership

There is no cost to this membership but customers who choose to join as a direct customer do not receive discounts on any of the products they buy.

Preferred Customer Membership

The preferred customer membership type is what most people choose to become a distributor for Melaleuca.

There is a one-time payment of $29 and an additional fee of $19.90 per a year.

Members of this type of membership get to enjoy up to 30% discounts when purchasing products.

While it is relatively cheap to join there is a sales quota of $55 a month in order to keep your membership active. If you do not meet your sales quota you will essentially be buying back your own products at retail value.

Compensation

Most MLMs have a complex compensation plan and trying to fully understand it can be frustrating.

To try to have a full understanding of how you can make money with Melaleuca you can check out the video below.

When it comes to building this business the only two things you must focus on are recruiting and selling.

There are 7% commissions and bonuses you are eligible to receive as well if you meet certain requirements.

Products

Melaleuca sells natural and eco-friendly cleaning, skincare, and health products. They have a wide range of products which include the following.

• shower cleaner
• toothpaste
• furniture polish
• laundry stain remover
• tea tree oil
• shampoo
• lip balm
• vitamins
• fiber
• tub & tile cleaner

While there are a large variety of products MelaLeuca offers, their products are more expensive than popular alternative options on the market.

For instance, Melaleuca Multivitamin & Mineral Supplement for Women costs $24 per 60 tablets while One a Day’s multivitamins for women costs $30 per 250 tablets.

The average per tablet for MelaLeuca is 40 cents while one a day multivitamins round out at 8 cents.

While customers that have used Melaleuca products in the past have given them a share of positive reviews, paying 5X more for something is not an option for those looking to spend wisely.

Pros

• Good Products
• Been in business for a long time

In researching the company I have found there to be a share of negative reviews along with positive on Trust Pilot. While their products are expensive there is a large selection to choose from and Melaleuca has an A+ rating with the BBB.

New MLM companies are sometimes vulnerable to being shut down in the first few years due to lawsuits and bad business practices. That is not something you should have to worry about with Melaleuca since it has been around for so long.

Cons

• Expensive Products
• Low Success Rate
• Past Momentum Stage
• Training

Most MLM companies usually offer products that are more expensive than alternative products on the market and Melaleuca is no exception.

Although their products are expensive, there are plenty of things that contribute to the low success rate of people joining MLM companies.

Besides not providing proper training for marketing online you are also competing with many others that duplicate the exact same thing you are doing. On top of that, it is your job to recruit your competition which will likely be a friend or family member you are trained to target.

There is more to lose than gain when joining an MLM company and its many years in business is a blessing and a curse for those considering joining Melaleuca. This is due to the fact that the best chances of earning in MLM companies are when they initially launch and have momentum being that many people may have never heard of the company.

Conclusion

Melaleuca’s methods of teaching members to recruit family and friends can ruin a relationship which is something that happens every so often when talking about multi-level marketing.

There are some newer network marketing companies that understand the importance of marketing online and will teach you some social media strategies to promote their brand.

Melaleuca does not offer such training to give you advanced knowledge in regards to that.

This is not a business opportunity I would recommend but if the person that signs you up really knows what they are doing and can provide you some real training then it might work out.

Even if you have experience with online marketing, the health and wellness industry is highly competitive and you are limited to selling products that you invest in but do not own.

Instead of owning a business and selling your own products for whatever price you want you are essentially working for Melaleuca and selling it at the price they want.

With that said, there are plenty of opportunities to make an income online which will require less work and can eventually replace your day job.

For a chance to make a passive income to take control of your own fate instead of having to rely on heavy recruiting…

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If you have any experience with Melaleuca or have used any of their products feel free to leave a comment in the section below