Have you been approached by a friend with this business opportunity?
Like many network marketing business opportunities, Melaleuca presents itself as an easy way to make money and finally quit your day job.
A way that everyday people can earn passive income and have the freedom to travel, spend more time with family and just leave the 9-5 grind.
But is that really the case?
I decided to do my own research into this business opportunity to see if you can really make money from Melaleuca or if it’s a scam?
Make sure you read my full Melaleuca Home Based Business review and find out everything about the company so you can make the decision whether to join or not.
So what is Melaleuca?
Melaleuca is a multi-level marketing (MLM) company that provides organic products that help people live healthier lifestyles.
The company was started by Frank Vandersloot in 1980 with the aim of helping people live healthier while being able to build their financial futures. Today, the company has just exploded and does over $1 billion in annual revenue.
Melaleuca is now global and can be found in:
- North America
- Hong King
- New Zealand
- The Netherlands
- United Kingdom
So is Melaleuca a scam?
The short answer is no.
There may be many similarities between an MLM and illegal pyramid scheme but in general MLMs are legitimate business structures.
A word of warning, if you are approached by a Melaleuca distributor who only talks about making money from recruiting others rather than actually promoting the products, RUN.
Because that is probably what you will end up doing, pestering friends and family to join this business opportunity. Whatever friends you do have left will all be suspicious each time you invite them over for dinner thinking it might be another MLM sales pitch.
If you are seriously considering whether to start a Melaleuca home business, you need to know what kind of products you will be selling and what the general demand for such products is.
The good news is that when it comes to the number of products, Melaleuca is in no shortage. Melaleuca sells products in the following extensive list of categories:
- Vitamins & Supplements
- Food & Weight Loss
- Cleaning & Laundry
- Medicine Cabinet
- Dental Care
- Facial Care
- Hair Care
- Bath & Body
- Essential Oils
- Home Fragrances
- Pet Care
I personally never tried the products, so I decided to hop on Amazon to check out some products and their ratings.
I found that most of their products had really great ratings of 4 stars and above. Most also seemed to have raving reviews.
One thing I must note is the expensive price point of Melaleuca’s products.
However, it is common for MLM products to be quite a bit more expensive than other alternatives.
The reason for the expensive price is rarely because of the product itself but because of the business model. As an MLM business model pays a commission to various recruits down the line, the price of products needs to build in sufficient buffer to pay the commissions as well as for the company itself to make profits.
This is something you need to consider and whether you friend and family (who will be your primary sales targets) are in a position to pay these prices for their household products.
So how do you get started a Melaleuca Home Based Business ?
There isn’t much information on their official website on how to get started with Melaleuca. Perhaps it’s because Melalauca pride themselves in being referrals based business.
There is however some information hidden within their FAQ’s page.
So there is a one off cost of $29 plus applicable sales tax to register as a member of Melaleuca and start selling Melaleuca to others. This cost includes a complete Melaleuca membership kit to help you get started.
This kit contains the following:
· Statement of Melaleuca policies
· The Melaleuca Compensation Plan
· Product List
· A checklist to help you determine which Melaleuca products will be useful for your home
· 10 Customer Agreements and 10 Independent Marketing Executive Agreements.
What I found odd is that the starter pack contains no product.
MLM starter packs usually contain the company’s top selling products in particular ranges so you can use these products as samples to show your friends and family and convince them to either buy the products or start their own Melaleuca home business.
I did find this pack that was listed as a sales aid. However, it will set you back $299, which is the special member price.
At least, that cost will be able to go towards your minimum monthly product purchases. Yes, to remain eligible to earn commissions with Melaleuca you need to order a minimum of 35 or 75 product points each month.
This is a minimum spend of about $50-$100 worth of products each month.
To keep your business running you will need to purchase incidentals like brochures and agreements when you sign on customers and new recruits.
How much can you earn with Melaleuca?
The Melaleuca compensation plan is pretty standard for an MLM. You get paid by:
- Selling their products
- Recruiting new distributors
- Earnings from your recruit’s sales
- Earnings bonuses from meeting sales and recruitment requirements
For every product you sell, you get at least 7% of how much the customer has spent. So for every $100 your customer spends, you get paid $7.
Like most MLM companies, there are big incentives in place to encourage distributors to recruit new distributors to promote products.
When you recruit new distributors, you can earn a percentage of your recruit’s total commissions in bonus. So the more people you recruit, the more extra commission you receive from the sales that they make.
These are the types of bonuses that Melaleuca pays out:
- Advancement bonus
- Pacesetter bonus
- Mentoring bonus
- Leadership development pool
- Leadership growth bonus
- Monthly car bonus
While they often paint pictures of the “Best Case Scenario” type earnings, it is extremely hard in practice to make a few hundred bucks from MLM business opportunities. This is the reason why 95% of the people leave the business opportunity.
So how much do Melaleuca members earn?
I decided to have a look at Melaleuca’s 2016/17 income disclaimer to see how much its wellness advocates actually earned.
These are the earning statistics for the members who have achieved Director status at Melaleuca.
I note that only 11% of customers who decide to start their own Melaleuca business even achieve this status.
So 89% of people make LESS than what is represented here.
So for the 11% that do make it to director, they earn an average of $2,093 per annum.
That is $175 a month that the top 11% earn.
I don’t know about you but that amount doesn’t really get me excited.
And that before taking into account business costs like purchasing brochures, cost of petrol, phone bills and time spent meeting up with prospects and throwing parties to sell Melaleuca products.
If trying to sell and recruit friends and family just doesn’t seem like your cup of tea, check out my #1 recommendation to build a home business WITHOUT direct selling or recruiting.
Should I start a Melaleuca Home Based Business ?
Personally I would think twice.
If you join Melaleuca, you will be restricted to only promoting Melaleuca products. And any business that you do build does not really belong to you. You are paying for the right to promote their products.
This means you are not your own boss and other people up the ladder will dictate many aspects of your business like what products you sell and at what price.
A better business structure
I personally prefer to have the freedom to be my own boss. I want to be able to decide what kind of products I will promote and I don’t want to be limited to products from only one company.
I want to promote products that I know my audience will love.
You can find out more about this business structure by checking out this free step-by-step training.
It is completely free and will explain to you the four step process to make money online with Melaleuca products or any products for that matter.
This business model is called affiliate marketing, where you can choose whatever products, even competitor products.
If you want to find out how to make money from the comfort of your own home, then get started with the free step-by-step training in Wealthy Affiliate. This will give you 20 interactive video lessons and other great resources. And did I mention it was free.
They have also a premium membership available if you decide affiliate marketing is for you and you want to take your business to the next level.
Have you had any experience with Melaleuca or other MLM programs? I would love to hear what you think of them and how they compare to affiliate marketing.
Let me know in the comments below!