Is Melaleuca A Scam?

Someone introduced you to Melaleuca products and the business plan, so you came to my post to find out, “Is Melaleuca A Scam?” If yes, you’ve come to the right place.

In my Melaleuca review, you’ll learn the below topics to make up your mind. I am also sure that you can make better decisions once you read my review to the end.

  • What is Melaleuca?
  • Melaleuca Product Lines
  • How To Make Money With Melaleuca?
  • Melaleuca Compensation Plan
  • Melaleuca 2020 Income Disclosure
  • Melaleuca Pros & Cons
  • Is Melaleuca A Scam?
  • My Alternative To Make Money Online

Without further ado, let’s get started!

Disclaimer: As the owner of Smileaffiliatesuccess.com, I have tracked down special deals for products, tools, and services mentioned herein. When you click my affiliate links on this page to make a purchase, I may get a small commission, and you will definitely get a great bargain. This is a win-win advantage for both of us.

What is Melaleuca?

-Summary of Melaleuca-

Product Name: Melaleuca
Founder: Founded in 1985 by Frank VanderSloot
Product Type: Health & Wellness MLM
Price: $19.00 + $99-$299 starter pack + 29 Product Points for each month
Recommend: No

Frank VanderSloot founded Melaleuca in 1985. For more than 35 years, it has been selling environment-friendly nutrition supplements, cleaning supplies, and personal-care products.

It generates more than $2 billion in annual revenue, and 25 percent of its revenue comes from Taiwan, Korea, Japan, Australia, New Zealand, and the United Kingdom.

According to the US Federal Trade Commission study on multi-level marketing companies, fewer than 0.29% of Melaleuca distributors profit, and more than 99% of distributors lost money.

Frank says that “this business model is for those people who want to supplement their income,” but is it true? Let me show you more details right below, so you can be the judges yourself.

Melaleuca's products

Melaleuca Product Lines

Melaleuca has more than 400 kinds of products. Here are the major product lines:

  • Health Nutrition & Supplements: Vitamin, fiberwise powder, meal replacement powder, protein powder, etc.
  • Medicine Cabinet: soothing balms, pain relievers, allergy relief, etc.
  • Bath & Body: shampoo, soaps, hand sanitizer, body wash, body lotion, etc.
  • Household: cleaning clothes, glass/toilet/kitchen/carpet cleaner, mops, etc.
  • Essential Oils: single and blended oils(similar to doTERRA and Young Living)

You could check HERE for more details, and you could find things you want to purchase or promote.

How To Make Money With Melaleuca?

There are two ways to make money with Melaleuca, and it’s the same with other MLM business opportunities.

  1. Retail Commission: Sell Melaleuca producs to make retail commissions
  2. Recruitment: Recruit people under your team to hit group sales for extra bonuses and incentives

You don’t make money with Melaleuca by recruiting but the group sales you and your team make for each given month. This is the difference between calling it a legitimate MLM business and a pyramid scheme.

Getting Started

There are options that you can choose to become a Melaleuca member or affiliate. I will focus on sharing the information about becoming an Independent Marketing Executive(distributor).

  • If you enroll as a Regular Member, there is no cost. What you can do is to purchase Melaleuca products at retailer prices.
  • If you enroll as a Preferred Member, the cost is $19. You will receive a 30-50% discount off regular prices as long as you order a minimum of 35 product points each calendar month.
  • If you enroll as a Preferred Member & Independent Marketing Executive, the cost is still $19. At this stage, you are receiving all the benefits of Melaleuca Preferred Member and the opportunity to make money with Melaleuca.

To start your Melaleuca business, you can choose any of the starter packs to showcase the products. The price ranges from $99 to $299.

To qualify for the commissions during any given month, you also need to have at least 29 product points, around $60 per month. Now, let’s calculate the total cost of joining Melaleuca as a distributor for one year.

  • $19 sign-up fee
  • $99-$299 starter pack
  • 29 product points each month: $60*12=$720

The best you can get is $838, while the worst is $1,038. Other costs are not included, such as additional training, travel, gas, food, or miscellaneous expenses, so the total cost must be higher than my calculation here.

Melaleuca Compensation Plan

Most MLM likes to create fancy terms and acronyms to make people see loads of ways to make money, causing people sleepy understanding all the rules. Melaleuca is no exception.

However, Melaleuca’s compensation plan could be concluded into the below three points.

  1. Commissions: You can earn 7% commissions and a 30-40% product discount for the products you purchased.
  2. Organization Commissions: You enroll new members into your organization and help them to make sales. You get extra bonuses by achieving team product sales. (7-20%)
  3. Extra Bonuses: Advancement Bonus, Mentoring Bonus, Leadership Growth Bonus, Monthly Car Bonus, etc…
You can earn 7% commissions and a 30-40% product discount for the products you purchased from Melaleuca.

What I Liked About Melaleuca

TOP#1 Good Reputation

There is positive feedback for Melaleuca’s products, and customers love the way Melaleuca cares about our health and the environment.

Mr. VanderSloot established a research and development department that evolved into a 20-person staff, including three Ph.D. chemists. Each Melaleuca product must be: safe, effective, eco-friendly, and affordable.

Melaleuca understands that only good products and services could make a company last longer and they did a good job. Let’s read some positive feedback from Melaleuca’s happy customers:

Good Reputation For Melaleuca's Products
Good Reputation For Melaleuca's Products
Good Reputation For Melaleuca's Products

TOP#2 The Longevity

Melaleuca was founded in 1985, which means it has been running the business for over 35 years. 90% of startups failed in the first five years. Melaleuca lasts because of the high-quality products they make, and those do solve people’s problems.

Another thought on the long history of Melaleuca is that If I had to choose between a new and an old MLM company, I would go for the old one first. Doing this could avoid many uncertainties from the new MLM companies.

TOP#3 A+ Rating on BBB

BBB stands for Better Business Bureau, and HERE is Melaleuca’s page.

A good rating doesn’t mean it’s perfect. Melaleuca still has issues with the cancellation process, and I will talk about this later.

Ugly Truth About Melaleuca

TOP#1 Expensive

Compared to the other competitors, Melaleuca’s product prices are high. It is because they have to mark up 30-40% of the price to pay a small portion to all distributors. Otherwise, this business model can’t last.

Take coffee blend as an example; the price for a Melaleuca’s preferred member is $9.99 for 10 oz while I could get many cheaper options online.

Melaleuca's products are pricey.

TOP#2 Melaleuca Income Disclosure

Melaleuca 2020 income disclosure told us some interesting numbers, and you’d better read them before starting.

  • 9% who started their Melaleuca business and achieved Director 1-2 made annual income from $274 to $30,159. The average annual income is $2,119.
  • It takes people average 328 months to reach a director status, which is 27 years.
  • For director 3 or above, they make $2,732 to $84,649. Only less than 3.9% of all Melaleuca distributors can achieve this status, and this takes them 25 years to reach director 3 status.

I don’t know about you, but spending 25 years to make money with Melaleuca doesn’t sound ideal. I will choose other methods to make extra money, and let me show you my alternative in one minute.

TOP#3 Cancellation Process

On Melaleuca’s BBB page, most complaints are about the cancellation process.

Melaleuca’s cancellation includes a lot of paperwork, and it’s not as easy as clicking a cancellation button.

Once you follow all the instructions and guidelines on their website, you need to print out the cancellation form with your signature. Then, you can either email, send, or walk to the nearest Melaleuca’s showroom to submit it.

Let’s read some unhappy customers’ comments:

Complaints for Melaleuca's Cancellation Process
Complaints for Melaleuca's Cancellation Process
Complaints for Melaleuca's Cancellation Process
Complaints for Melaleuca's Cancellation Process

Is Melaleuca A Scam?

No, Melaleuca is not a scam. It’s a legitimate MLM company that has run the business for over 35 years. The products receive positive feedback, and people love Melaleuca because they care about people’s health and the environment.

But, I don’t prefer MLM business to make money. Why? It takes more investment, time, effort to start a business. Not to mention the low success rate.

When it comes to making money online, there are plenty of options on the internet, such as freelancing, dropshipping, GPT sites, drop services, or affiliate marketing. Wanna know my top-pick? Read on to find out more!

My Alternative to Make Money Online

My alternative to making money online is through affiliate marketing instead of promoting Melaleuca products in person. Try to imagine you sell Melaleuca products to your friends, family, or anyone you know. Don’t you feel embarrassed or blushed? They might avoid you ever since.

Doing affiliate marketing will save you from that:

  • It’s free to start your affiliate marketing business.
  • You don’t need to buy physical products and sell them face to face.
  • There is no monthly minimum sales quota in affiliate marketing.
  • You don’t recruit people to become your downlines to build a team.
  • You are not restricted to promote one product. You can promote anything you like!
  • Work on your own schedules & you are your OWN BOSS!

You only need to start a blog running an affiliate marketing business with quality content. So every time people land on your site to read your products reviews or other articles, they will find insight and value. If they like it, they may purchase the products or services via your links. Here come your earning potentials.

The Process of Affiliate Marketing

The platform I am using currently is Wealthy Affiliate. You will find all the proven-to-work training courses, every Friday night LIVE training courses, one keyword research tool called Jaaxy, 24/7 site support, and the most friendly community.

You are more than welcome to check my full Wealthy Affiliate review HERE, or click the button right below to start your online journey with us.

Try Wealthy Affiliate Before Bed Tonight

Take Action To Start Making Money Today! 🙂

Wealthy Affiliate Income Proof

Here are some of the most active members from Wealthy Affiliate. Each of them did succeed in generating a sustainable income to replace their 9-5 jobs. You are more than welcome to check their stories HERE.

I hope you enjoy this review and you are more than welcome to share ideas or leave your comments below. I will reply as soon as I can, thanks.

Enjoy this post? Don’t forget to bookmark this page or save it on Pinterest!

Is Melaleuca A Scam?Is Melaleuca A Scam?Is Melaleuca A Scam?Is Melaleuca A Scam?
ABOUT THE AUTHOR

Matt is a 30ish guy who has a corporate job and chases the dream to become a digital nomad with a laptop lifestyle. He is passionate about making money online and will keep creating quality content to find his online success.

4 thoughts on “Is Melaleuca A Scam?”

  1. Hi Matt, I came across your article Is Melaleuca a Scam. It reminds me of multi-level marketing, which I’m not too fond of, but I do like the idea of affiliate marketing. I was involved with a company selling products just like Melaleuca, and I found them to be quite pushy. If you didn’t perform well, my uplevel soon dropped me instead of guiding and showing me how it works. Thank you for providing this article.

    Reply
    • Hi Yvonne,

      Yes, MLM businesses need downline affiliates to purchase products to stay active with the compensation plan. This is also why people don’t feel like joining an MLM business to make extra money. If you can turn yourself into a recruiting machine or full-time sales manager of any MLM company, you will be successful very soon. However, the success rate of MLM businesses is close to 1%.

      I suggest people try affiliate marketing to make money online because you will have a higher success rate. I’ve leveraged Wealthy Affiliate to generate a stable income, so I know it’s possible. If you don’t know which route to go, Wealthy Affiliate might be the answer. 🙂

      Matt

      Reply
  2. Hi Matt!
    Thanks a lot for your comprehensive review. Melaleuca is (unbelievably) long on the market. I mean, 35 years for an MLM? Wow! I can understand why many people would sign in with them. On the other side, there are some warning signs, people searching for an extra or full-time income shouldn’t join. The headline being, income. Did it take 25 years for people to reach a maximum of almost $85k/annual? That seems almost like a bad joke. Your recommendation seems to offer a quicker, more efficient, and enjoyable way to achieve online income. It’s definitely worth considering. Cheers

    Reply
    • Hi Julius,

      Yes, Melaleuca has thrived in the MLM industry for more than 35 years. It’s pretty surprising, isn’t it? If people take this opportunity as a side hustle, I don’t see the harm in joining Melaleuca. But just as you mentioned, this may not be the right choice to replace your 9-5 unless you can spend a few years trying to recruit people under your team to hit group sales for commissions.

      I will suggest people try my recommendation, Wealthy Affiliate, to start a blog running an affiliate marketing business. It’s affordable than MLM opportunities, and no prior experience is needed. 🙂

      Matt

      Reply

Leave a Comment