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Thread: Melaleuca

  1. #1

    are people making $$ with Melaleuca?

    looking to start a biz with them....

  2. #2
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    Re: are people making $$ with Melaleuca?

    Yes, thousands are making money with Melaleuca. It is something that will build over time if you stay focused and consistently share the concept with others.

    Make sure you are signing up with a good support group that provides a lot of training, interaction and support. Learn everything you can about the products and the science behind them. Set realistic goals and follow through.

    Make sure you understand what it means to be a preferred customer. Read the Customer Agreement and Marketing Executive Agreemen front and back before signing up. Make sure you understand how the backup order system works in the event you forget to place an order in any month. Ask questions before signing up so that there are no misunderstandings. :)

  3. #3

    Re: are people making $$ with Melaleuca?

    thanks for the reply brendakc :)

  4. #4
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    Re: are people making $$ with Melaleuca?

    Let's take the forty percent that do sell Mel-referrals, representatives, associates, minions- call them what you will. Let's join that group together into one contiguous whole. Mel pulls out 8% at the top and gives separate figures for them, but I have put all the reps in one group.

    Title/ average earnings per year/ percent of Reps at level
    Market Executive 1 $104 54.3
    Market Executive 2 $222 15
    Market Executive 3 $485 10.7
    Director 1 $1,778 15
    Director 2 $5,349 2.7
    Director 3 $9,990 1
    Director 4 $15,374 .38
    Director 5 $23,777 .18
    Senior Director $52,276 .52
    Executive Director $166,199 .26
    Corporate Director $1,151,125 .006

    95% of the reps are Market Executives through Director 1, one can see for themsleves how abysmal the earnings are. 5% are in the Director 1 to top the level.

    So, can you make money after taxes and tremendous expenses???? I think you can decide for yourself!

    Soapboxmom

  5. #5
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    Re: are people making $$ with Melaleuca?

    The ME I category includes everyone over the past 10 years who has referred one person.
    The ME II category includes everyone over the the past 10 years who has referred two people.
    The ME III category includes everyone over the past 10 Years who has referred 4 to 7 people, the average being 5.

    It stands to reason that anyone putting in time and effort to build a business will refer more than 5 over a period of 10 years.

    However, earning $485 per year for telling only 5 people about Mela one time is not bad. :)

    Earnings with Melaleuca will depend on how much time and effort you are willing to put in. Ask the rep who contacted you to explain everything.
    Last edited by brendakc; 10-23-2005 at 04:08 PM.

  6. #6

    Re: are people making $$ with Melaleuca?

    So are people making money or not :confused:

  7. #7
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    Re: are people making $$ with Melaleuca?

    Well,

    80% are Marketing Executives, 15 % are Director 1 and only 5% are Director 2-Corporate Director. These figures are before expenses such as office, computer, transportation, phone, supplies and business materials. You will pay for all your own benefits such as medical, dental, disability, life insurance, and retirement. You will pay taxes on your earnings, though they will tell you about all the deductions you can take. You must be careful not to abuse that privelege or you will receive the honor of an audit for your creativity. It pays to seven levels and all the money is funnelled upward so you must build a sizable downline to reach that top 5%. The MLM math is always frightening once you understand the structure of the compensation plan and the true average earnings! You must also remember the originators of the scheme and the early recruits are already in the top positions! Approach any MLM/ Network Marketing program with extreme caution!

    Soapboxmom

  8. #8

    Re: are people making $$ with Melaleuca?

    brendakc thank you for the wonderful reply....

    There are true and honset people out there!! :)
    Last edited by thecatthatcameback; 10-26-2005 at 11:23 PM.

  9. #9
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    Re: are people making $$ with Melaleuca?

    Forbes 400
    If You Believe
    Phyllis Berman, 10.11.04

    Put your faith in thrift, hard work and Melaleuca's household products and you can better your lot in life. Also Frank VanderSloot's.

    Frank L. VanderSloot sells items like Classic Tooth Polish ($3 a tube), Replenex (90 glucosamine pills for $10) and Nicole Miller Timeless Age Defying Serum ($18 a bottle). He doesn't hit the road himself to ring doorbells. At 56, his sales days are far behind him. He leaves the pitching to an army of part-time hucksters who sell these and 350 other household and "health" products for Melaleuca, his privately held firm in Idaho Falls, Idaho.

    Melaleuca is a pyramid selling organization, built along the lines of Herbalife and Amway. Vendors get commissions on the products they sell and also on products sold by vendors they recruit. From a near-standing start 19 years ago, VanderSloot has built his firm up to an expected $620 million in volume this year, roughly half of that to be paid out to the vendors as commissions. A few of them make a very good living off Melaleuca; most do not. Enough of the money lands at the top that VanderSloot's 50% share of the business, we estimate, is worth $700 million.

    Everyone buys a $29 kit, crammed with sales materials for demonstrations as well as VanderSloot's motivational tips, and signs up to buy a minimum of $45 a month worth of Melaleuca wares--from a $2 Hot Shot, a breath spray, to a $30 bottle of ProVec CV, a grape seed extract that supposedly reduces LDL, the bad cholesterol....Most of the items have a health or environmental flavor to them, like sunscreen with Vitamin E or phosphate-free detergent.

    VanderSloot is pretty up-front about how tough it is for most salespeople to earn any money. And unlike, say, Amway, Melaleuca tells its new recruits that they're starting out as customers on the bottom of a towering pyramid. There are approximately 150,000 of these participants, buying the soaps and potions for themselves but not yet making any significant sums from their 7% commissions (350,000 people are pure customers). As they move up the rungs, though, they can see some revenue, because they get 7% as well on sales by vendors they have recruited (the chain of commissions extends to seven levels). It appears that there are 30,000 or so serious players near the bottom averaging $1,750 a year in commissions.

    The big bucks, of course, go to those who sign a large number of disciples who go on to recruit other vendors. Senior directors, as they're called, have 650 customers in their network, of whom 25 or so are actively recruiting. Executive directors claim 2,400 or more customers, with perhaps 90 of them on the proselytizing trail. This crew of veterans, of whom there are 359, can expect $186,000 a year in commissions plus $1,000 a month from Melaleuca toward their automobile costs. Leading producers: three presidential directors who got commissions topping $1 million in 2003. VanderSloot thinks five people will scale those heights this year.


    More fun with math coming!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
    Gee, TruthMonger/Brendakc-- Hundreds or thousands are required beneath you to make any money. Are you now going to say Forbes and Frank are liars too?????

    Soapboxmom

  10. #10
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    Re: are people making $$ with Melaleuca?

    TruthMonger/Brendakc,

    "VanderSloot has built his firm up to an expected $620 million in volume this year, roughly half of that to be paid out to the vendors as commissions. There are approximately 150,000 of these participants, buying the soaps and potions for themselves but not yet making any significant sums from their 7% commissions (350,000 people are pure customers)." $620 million divided by 2(half)=$310,000,000. $310,000,000 divided between 150,000 salesman=$2066.67. This is the average earnings before taxes and expenses to run the home business. 350,000 customers to 150,000 reps is a 2.3 to 1 ratio. Pathetic would hardly describe it. They sell to themselves for the most part creating tremendous profit for the top of the pyramid.

    "Vendors get commissions on the products they sell and also on products sold by vendors they recruit. VanderSloot is pretty up-front about how tough it is for most salespeople to earn any money. And unlike, say, Amway, Melaleuca tells its new recruits that they're starting out as customers on the bottom of a towering pyramid." So, let's review. Vendors (salespeople)
    get commissions on products they SELL and on their RECRUITS sales. It is very difficult to make any money due to the pyramid structure of the plan because all the money funnels upward in this "TOWERING PYRAMID", Brenda.

    "The big bucks, of course, go to those who sign a large number of disciples who go on to recruit other vendors. Senior directors, as they're called, have 650 customers in their network, of whom 25 or so are actively recruiting. Executive directors claim 2,400 or more customers, with perhaps 90 of them on the proselytizing trail. This crew of veterans, of whom there are 359, can expect $186,000 a year in commissions plus $1,000 a month from Melaleuca toward their automobile costs. Leading producers: three presidential directors(corporate directors on earnings table with 13,000+ beneath them) who got commissions topping $1 million in 2003. VanderSloot thinks five people will scale those heights this year." So, there are 362 making a real living off Mela out of 150,000. They have 2,400 or more under them as salesman or customers to do so. If we take out the 3 millionaires and 359 making $198,000 (including car allowance). $310,000,000-74,082,000=235,918,000. 235,918,000 divided by the 149,638 remaining reps they average $1576.59 annually before taxes and expenses which are many. Gee, that sounds like RECRUIT, RECRUIT, RECRUIT.......

    "A few of them make a very good living off Melaleuca; most do not. Enough of the money lands at the top that VanderSloot's 50% share of the business, we estimate, is worth $700 million." Gee, now we can play guess which goon at the top of the heap rakes in all the money! LOL

    Brendakc/TruthMonger I suggest you quit calling me a liar and every other name in the book and go for that compensated help you need!

    Soapboxmom

  11. #11
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    Re: are people making $$ with Melaleuca?

    Since scumbox, who knows nothing about the Melaleuca business model, chose to paste an article that is a case of slanted reporting, and adds her own trash based on assumptions, but refuses to post Frank's response to Forbe's, I have posted it below, along with the response of someone else.

    Responses to the Forbes article:

    We were surprised at the suggestion that Melaleuca is a "pyramid-selling organization" along the lines of Herbalife and Amway in "If You Believe" (Oct. 11, p. 89). That's as misleading as suggesting that a cow is similar to a cat just be-cause both are four-legged mammals.Whatever the similarities be-tween cats and cows, they do not make cats bovine nor cows feline. It's the many differences in our business model and culture that set Melaleuca apart from any multilevel marketing company. Painting Melaleuca as a pyramid-selling organization suggests that you don't understand the vital differences between these two divergent business models.
    Frank L. Vandersloot
    Chief Executive, Melaleuca
    Idaho Falls, Idaho

    My wife and I are part of your "army of part-time hucksters" and have been since Melaleuca started here a year ago. The products are exceptional and the prices are reasonable. The majority of Melaleuca "hucksters" are simply customers who love the products and continue to reorder them. We wish Frank VanderSloot many more millions in personal wealth. Invercargill, New Zealand
    Robert F. Lindsay
    Invercargill, New Zealand

  12. #12
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    Re: are people making $$ with Melaleuca?

    How I Did It

    Hall of Fame Profile: Frank L. Vandersloot

    On the importance of reputation.
    From: Inc. Magazine, Inc. 500 2004 | Page 23 By: John Fried Photographs by: Robbie McClaran

    Avon ladies. Tupperware parties. Pyramid schemes. That's what most people think of when they hear "direct-marketing company of home and health care products." Frank VanderSloot has changed those perceptions. His Idaho-based company, Melaleuca, which manufactures and distributes natural products ranging from shampoo to vitamins to tile cleaner, has reinvented the direct-marketing model, beginning by dialing back the sales pressure. The company's five-year run on the Inc. 500 began in 1990, and last year Melaleuca had revenue of $546 million. Melaleuca's marketing executives, as the salespeople are called, earn anywhere from a few hundred dollars a year to, in a few rare cases, as much as $1.75 million annually.

    Melaleuca began out of the ashes of a previous company. In 1985, I became CEO of Oil of Melaleuca, a multilevel marketing firm selling products based on melaleuca oil. This oil, distilled from the leaves of the melaleuca tree in Australia, has natural antiseptic, fungicidal, and analgesic properties. And it has a history: Australians used it in first-aid kits during World War II for minor skin conditions, abrasions, and insect bites. The idea was to take the oil and put it into cosmetics.

    I hadn't done my due diligence on the company before I got there. The business was full of problems. Like most multilevel companies, commissions and revenue were based on the idea of getting people to set up a business selling the product to consumers. One guy tries to set the next guy up. That guy tries to set up the next guy. They make commissions by pushing large amounts of inventory.

    I quickly learned the major problem with that business model: Not a lot of product gets to the end consumer. It looked like the company was bringing in a lot of money, but it was mostly revenue from starter kits sold to folks setting up their business.

    We had all kinds of other problems as well. A lot of our distributors were making claims in regard to what melaleuca oil could do that were not substantiated with good science. Plus, the family that had started the company had invested in a ranch where it had been told 80% of all the melaleuca trees in the world stood. Not true. Maybe only 5% of the world's melaleuca trees were on this ranch.

    I've learned that the bleakest of times is often the best opportunity. One of my first determinations as CEO was that we had to close the company. I went to the owners of the company, and I told them we could rebuild if we ditched the current business model and started over. I wanted to get as far away as possible from multilevel marketing. I also told them that I wanted to be a partner in the business. They said, "Okay, but you've got to invest what we invested." That was basically my life savings.

    I learned a whole lot in the next five months. I learned that there are a lot of folks out there who want naturally oriented products that aren't based on wives' tales or folklore. They want scientifically documented products that really work. I also learned that there were a lot of people looking to make it on their own. It's really tough to start your own business. Forty years ago you could start a hamburger stand and sell a better hamburger, but you can't do it today. So my goal was to come up with a business model that not only would market good natural products, but would also help set people up in business without all the regulations.

    We rolled out an entirely new business model and product line on September 1, 1985. We sold more than just melaleuca oil; we had other naturally oriented products, like a line of cleaning products. I told our distributors, "We're not going to be operating in that multilevel-marketing deal you guys were interested in. It's not going to be a get-rich-quick program." No one was going to be selling inventories to people, so there would be no incentive to load people with product.

    We lost half of our distributors. Our first month's sales were $75,000. The first three or four years, we didn't grow very much, partially because we were still trying to communicate our business model to the masses. But after our fifth year, we made the Inc. 500.

    In the beginning I used to write all the catalogs, all the sales literature, all the brochures. Now a lot of things have improved, starting with our literature. But it's essentially the same concept -- the distribution model has worked since the first day. When a customer goes online or calls in to place an order with us, the person who gave him that catalog will get a commission. No one is knocking on his door. He didn't come to a party where he was pressured into buying or selling something. And we save money because we don't do any advertising and we ship right from our factory to people's homes.

    Let's say you've got an independent marketing person and he's out representing your products and having a whole lot of success. But you learn that he's doing it in a way that isn't quite ethical, or is exaggerating the viability of the product. Some companies may be tempted to say, "Well, wait, look how much business he's bringing us. We'll take the risk. Maybe we won't get in trouble. We don't want to tap him on the shoulder and say, 'You can't do this.'" We've never shied from that. If somebody does that it risks our entire business, our entire reputation. I don't care how much money you bring in, if you're doing it the wrong way, we're not going to let it happen.

    I love Corporate America, but it's not necessarily fair. When I see people who are struggling financially, I want to help those folks out. My family didn't have much money growing up. We shopped at St. Vincent de Paul and Goodwill stores. We've tried to design a business model for those people who want to supplement their income because they would like to make some extra money or because they are in debt up to their eyeballs. Something like 190,000 people earn a check from Melaleuca each month. About 20,000 of them make their primary living through the company.

    The best advice I can give is that bad news doesn't always equal bad results. If the original company, Oil of Melaleuca, had been even a marginal success then we wouldn't have been tempted to plow ahead. It's just because Oil of Melaleuca was such a disaster that Melaleuca has become a success. If something isn't working, don't be afraid to plow it under and start over.
    http://www.inc.com/magazine/20041015...ndersloot.html
    Last edited by brendakc; 11-03-2005 at 03:49 AM.

  13. #13
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    Re: are people making $$ with Melaleuca?

    Direct Selling Association
    2005 Education for Life Award Recipient: Melaleuca, Inc.

    Financial Freedom University
    Melaleuca, Inc., is exceptionally proud of making a real difference in the wellness of its customers and through its products and programs. Financial Freedom University increases people's financial wellness by training business builders, friends and family on how to get out of debt, accelerate a retirement fund and pay off a mortgage in one-third the time. Financial Freedom Awards are given to those who have become debt-free through the practice of managing one's debt and household expenses.
    http://www.dsa.org/press/awards_recipients_annual.htm

  14. #14
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    Re: are people making $$ with Melaleuca?

    Better Business Bureau
    And Key Bank

    Present the

    http://www.idahofalls.bbb.org/

    Winners of the Better Business Bureau
    Hall of Fame


    October 20th was the first Annual Torch Awards for this Better Business Bureau.

    This BBB is one of only 120 BBB's nationwide and was established in this area in July of 1987.

    Well known for pointing out the "Bad Guys", this is the first celebration of recognizing Ethical Businesses and their contributions to a vital and trustworthy marketplace.

    All active charter members of the BBB will be individually recognized as the founders of our local BBB service. A list of their Businesses are on the BBB web site at www.idahofalls.bbb.org.

    Of those, Twelve BBB Members were chosen as recipients of the 'Hall of Fame' awards for their example of ethics and integrity in their dealing with customers, employees and the community. They are:

    1. Skandia Properties - Karin Fry
    2. CableOne - Dean Jones & Dick McDonald
    3. Culligan Water, Pocatello - Roger & Blake Jones
    4. Post Register - Jerry Brady & Marny Clifford
    5. Hirning Pontiac Cadillac GMC, Pocatello - Art & Kelly Hirning
    6. Melaleuca, Inc. - Frank Vandersloot
    7. Lee's Jewelers - Lee Jones
    8. KIDK TV - Steve Cannon accepted
    9. 20th Century Ford Dodge, Blackfoot - Brian Mattson
    10. Brady's Inc. - Cliff Brady
    11. Swafford Law Offices - Ron & Twinkie Swafford
    12. Greater Idaho Falls Chamber of Commerce
    http://www.idahofalls.bbb.org/

  15. #15
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    Re: are people making $$ with Melaleuca?

    Melaleuca's Founder and CEO represents the state of Idaho on the Board of Directors for the United States Chamber of Commerce.

    http://www.uschamber.com/about/board/all.htm

  16. #16
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    Re: are people making $$ with Melaleuca?

    American Psychological Association
    Psychologically Healthy Workplace Awards

    2003 Best Practices Honors Program

    The 16 Best Practices highlighted came to light as part of the American Psychological Association's new national recognition program -- "The Psychologically Healthy Workplace Award: Best Practices Honors," which recognize companies for innovative programs and policies that support psychologically healthy work environments.

    Each of the organizations honored was nominated for the national recognition by the psychological association in the state where they reside. Each organization had already been selected as a winner in their respective states' Psychologically Healthy Workplace Awards. They were nominated for the national honor because of a unique program or policy that stood out from among the rest.

    Since 1999, the Psychologically Healthy Workplace Award program has been given to businesses and organizations at the state level for business practices that foster a psychologically healthy work environment for employees. The annual award program implemented to date by 27 states highlights a variety of businesses and organizations from large to small, profit to non-profit. The judging process evaluates applicants on the following four criteria: employee involvement, family support, employee growth and development and health and safety.
    American Psychological Association
    Psychologically Healthy Workplace Awards
    2003 Best Practices Honors Program

    2003 Best Practices Honoree - Melaleuca

    Flexible Shift Schedule Allows for Varied Workforce

    Idaho -- When it comes to juggling work schedules, Melaleuca, Inc. keeps a lot of balls in the air so its employees can focus their attention on the balancing act between work and family life.

    The Idaho-based maker of wellness products provides nearly 70 different work shifts to ensure that its 1,400 employees worldwide have the flexibility of working at times that support their family life. Because the company offers so many choices, Melaleuca has a varied workforce that includes students, parents and grandparents. Workers can choose from shifts that range from full-time to part-time to a couple of days a month.

    While it makes forecasting a little more difficult, the company has found the increased planning time is worth the trouble because they have been able to train and retain a phenomenal workforce. The company has also found that flextime is an important employee non-monetary benefit.
    http://www.apapractice.org/apo/psych...chedule0.html#

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