Is Melaleuca a Scam or a Legit Business Opportunity?

Welcome to this Melaleuca review. They are a wellness company that has been in the game for a while. If you’re wondering about the business opportunity side of things, this will help.

Some call it a scam, some a pyramid scheme, and then there are some loyal supporters of the Melaleuca platform. Doing your research’s always a good idea since it can help you avoid scams and find legit opportunities that don’t disappoint.

With that said, let’s get started.

What Is Melaleuca?

Melaleuca is a multi-level marketing (MLM) company that specializes in health and wellness products. The Idaho-based company was founded by Frank L Vandersloot in 1985, who is also the current CEO.

Melaleuca is a company that has been around for over 30 years, making it a well-established player in the wellness industry. With a unique business model that places people before profits, the company has attracted a large following and a wide range of products.

However, there have been mixed reviews about Melaleuca from customers and former members, leading some to question whether it is a scam or a legitimate business.

How does Melaleuca work?

Unlike most MLM companies out there, Melaleuca is a bit of an outlier. Like Tranont, it’s based in Utah, which offers a better environment for network marketing businesses to thrive because of a lack of government interference.

One aspect of Melaleuca that sets it apart from other companies is its commitment to putting people first before profit. This unique approach of focusing on the well-being of their customers has helped them build a loyal following over the years.

Melaleuca products are known for being eco-friendly, as well as effective in promoting health and wellness. The company prides itself on using natural ingredients that are safe for people and the environment. Moreover, they offer a satisfaction guarantee for all their products, demonstrating confidence in the efficacy and quality of their offerings.

While Melaleuca’s direct selling model might seem similar to multi-level marketing (MLM) at first glance, it is important to note that there are differences. Unlike MLMs, Melaleuca doesn’t require representatives to purchase inventory, which reduces the financial risk for those who want to sell Melaleuca’s products themselves.

If you wonder, the name is derived from Melaleuca alternifolia, a tee tree. The company offers hundreds of unique products and uses favors traditional word-of-mouth selling. Just order a product online to be delivered to your home. The company serves two different customers:

• Direct customers (the ones who pay the full price for individual products)
• Preferred customers  (the ones who opt for a membership and receive discounts across the product line, usually around 40%)

They claim to manufacture chemical-free products that are safe to use. Some of their leading competitors include Colgate-Palmotive and Procter & Gamble.

How To Get Started

With Melaleuca, you have two options:

1. Be a regular customer and purchase the products at retail prices.
2. Become a preferred customer and save 30-50% depending on the products.

To be a preferred member, it’s $1 for the first year customer membership agreement and then $19 per year second year onwards. You must use 35 points every month to maintain your preferred status. Products will be auto-shipped to your place once signed into your account.

With the auto-shipment, you can have 35 or 75 points a month plan. These are points, not a fixed dollar value, and can be used to order any of the hundreds of products Melaleuca offers.

Also known as forced purchases, you can select your desired products and have them shipped to your door. If you fail to do so, the company may send you random products to meet the criteria. These may be the ones the company wants to get rid of (hence the backup order).

The Membership

If you’re not content with the membership, Melaleuca members can cancel anytime. The main hangup is that you must send a letter via post. Unlike with other platforms, the cancellation process isn’t a breeze.

They have been around since 1985 but haven’t had a lot of updates on how they operate, and this is one of them. Moreover, since the cancellation is a bit of a headache, more people will stay on board because no one wants to do the heavy lifting (write a physical letter and post it).

If you intend to go on a vacation for a while or have a little break from auto-shipment, connect with their customer support team, and they will hold it for you for a few months till you return.

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Is Melaleuca a Pyramid Scheme or a Scam?

No, Melaleuca is not a pyramid scheme or a scam. The company sells its products and prefers old-school word-of-mouth referrals. The majority of the customers prefer to stay customers, and only some of them opt to promote it as a legitimate business opportunity.

It’s important to note the distinction between a pyramid scheme and a multi-level marketing (MLM) company. Ultimately, Melaleuca is an MLM company offering various health and wellness products.

In contrast to an outright pyramid scheme, an MLM business model rewards its distributors for retail sales and sales made by their recruited downlines. Melaleuca claims to be a “direct sales” company. Still, it operates similarly to other MLM companies by allowing its distributors to build an income stream through personal sales and their downlines.

Unlike a pyramid scheme, Melaleuca doesn’t rely on recruiting people to the system. Nor do they promise big money or offer a get-rich-quick affiliate program. Even their products are legitimate and have been around for nearly 30 years.

Most critics agree that Melaleuca is not a a pyramid scheme in disguise. The company has been around for over 30 years, growing into a $2 billion giant that operates in nearly 20 countries worldwide. Its longevity in the industry and global presence can be seen as an indication of its legitimacy.

However, it’s important not to overlook that Melaleuca shares some similarities with pyramid-scheme organizations. These similarities include earning commissions on personal sales and products sold by recruited downlines. But unlike illegal pyramid schemes, actual value products are sold and distributed within Melaleuca’s ecosystem.

The Product Line

Over 400 different Melaleuca products exist, which are marketed as better, safer, and fresher than grocery store brands sold in stores. However, this review is more about their business opportunity (how to make more money with them). As part of our Melaleuca review, you’ll find that you will have plenty of opportunities for selling Melaleuca products.

Despite their claims, there’s a fair chance not all their products are environment-friendly and may have some added chemicals. There hasn’t been any scientifical research on the same (yet). Here are a few of their popular product categories:

1. Beauty

This category contains nearly 300 products ranging from lip treatment to makeup remover to brow pencils. Regardless of what you’re looking for, there could be a product to fulfill your needs.

For instance, a product Creme-to-powder foundation costs $42 if you’re a regular customer and $25 if preferred. It will cost you 15 points.

2. Nutrition

You’ll find supplements like whey protein, peak performance packs, snack bars, savings packs, and peak performance vitamins in this category.

For instance, Peak performance bone Joint, a premier bone and joint product, costs $70 to regular customers. With the annual membership, you can save up to 40% on the pricing.

3. Household and Hygiene Essentials

The household category has three sub-categories:

1. Cleaning and Laundry, cleaning products designed to have low toxicity
2. Pet care
3. Home Fragrances

Mela Power is one of their detergents that supposedly uses biodegradable surfactants to get rid of dirt. It costs $25/$17 (10 points) depending on how you buy it (direct/with membership points).

4. Bath

You can find body lotions, gums, toothbrushes, and so on in the bath section. The toothbrush costs $4 to regular customers; as a member, you can save $1.3 on the retail costs.

For more information on Melaleuca pricing, you can check the full product list here.

See Related: Is 4Life a Scam or a Legit Business Opportunity?

Melaleuca MLM Review: What is the Income Potential With the Business Model?

Melaleuca has been around since 1985 and is a wellness company promoting itself as the largest online wellness shopping club in North America. The question often arises, “Is Melaleuca an MLM?” The answer is yes, it is a multi-level marketing (MLM) company.

As an MLM, Melaleuca relies on its members to promote and sell its wellness products. Unlike some other MLMs, joining Melaleuca is considered fairly low-stakes, which may contribute to its longevity and growth over the years. Members earn commissions and bonuses based on their sales and the sales of those they recruit into the business.

It is important to note that being an MLM does not automatically mean a company is a scam or a pyramid scheme. While there are cases of illegitimate operations within the industry, MLMs can be legitimate businesses with proper compensation structures and ethical practices.

In the case of Melaleuca, the company has been in business for decades, offering a diverse range of products and focusing on creating a healthier lifestyle for its customers and members. The longevity of the company suggests that it is not just a fleeting pyramid scheme.

Unlike other multi-level marketing programs, you don’t have to recruit people into the Melaleuca MLM. When you join Melaleuca, you can only refer people via word-of-mouth referrals. If one of your referred people makes a purchase, you’ll earn 20% of the product price as commissions.

Melaleuca’s support team is fantastic and willing to help you if you run into any issues. You can earn up to 7 levels – 7% on each level below yours thanks to the MLM industry structure. You won’t enjoy this unless you’re extroverted and love team building/direct selling/networking for your own business.

See Related: Is Pruvit Pyramid Scheme or a Legit Business Opportunity? (Review)

Melaleuca Reviews

As a writer researching Melaleuca, I found different sources expressing varied opinions on its legitimacy. For instance, on Trustpilot, a user review posted on August 2023 complains about being charged for products even after canceling them and mentions poor customer service. However, it should be noted that this is just one review and may not represent the overall terrible customer service experience.

On Sitejabber, Melaleuca has a rating of 4.27 stars out of 5, based on 385 reviews. Most customers appear satisfied with their purchases, frequently mentioning positive aspects like customer service, cleaning products, and peak performance. The company ranks 5th among alternative medicine websites, showing a relatively good reputation in its industry.

According to Scam Detector, Melaleuca’s website is considered safe and secure, with a 100 out of 100 reputable rankings. This indicates a high level of legitimacy regarding online security, data protection, and trustworthiness. However, it’s worth noting that this evaluation is solely based on the website’s security and not necessarily the company’s business practices or product quality.

In terms of its business model, Melaleuca operates as a direct-selling company that deals in nutritional supplements, cleaning products, personal care products, and cosmetics.

Although direct selling companies can sometimes be perceived negatively due to their similarities to multi-level marketing (MLM) schemes, it’s essential to assess each company individually. There is no conclusive evidence to label Melaleuca a scam or an illegitimate MLM company strictly based on its business model.

Lastly, Melaleuca has received customer complaints on Better Business Bureau’s (BBB) profile. It’s important to recognize that customer complaints are not uncommon for any business, and the BBB helps resolve disputes between consumers and companies.

Melaleuca’s status as a multi-level marketing (MLM) company has also led to some skepticism and negative opinions. People are wary of any multi-level marketing company as well as network marketing companies, even questioning the company’s legitimacy. Some detractors argue that Melaleuca scams exist when representatives use aggressive sales techniques and wear down potential customers to get a sale.

The Good

• The company has decent products and a lot of variety (400+ products). Depending on your health & wellness needs, there’s a chance you can find a product that meets the criteria.
• Decent customer support for both program associates/distributors and customers.
• The company has been around since 1985 and has survived for a reason. They are legitimate and offer tangible products that people use daily.
• They prefer word-of-mouth referrals over anything else. They don’t ask you to recruit and bring people onto the platform (scams encourage you to do it).
• If you like their products and have been buying them for a while, you can get an inexpensive membership and save money on all your purchases.

The Bad

• The payouts aren’t handsome; you’ll only make 20% on your direct referrals’ purchases.
• Membership cancellation can be a headache at times. You’re required to post a physical letter to cancel your membership. This can be a chore that people may put off for a while and hence stay with their membership plan for a longer time. Clicking a few buttons is a lot easier than writing/posting a physical letter.
• Auto-shipment/forced purchases to come with the membership. Depending on your plan, You must use your 35/75 points and deliver products to your doorstep.

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Final Words – Is Melaleuca a Pyramid Scheme and a Scam?

No, Melaleuca is not a scam. It’s a legitimate business that has been around for more than 30 years. Not only do they have real tangible products that people use, but they also don’t encourage recruiting.

They heavily use old-school word-of-mouth referrals, and this approach has nothing wrong. If you’re considering the platform for the products, by all means, go ahead. We wouldn’t recommend the platform if it weren’t for their quality products, though.

However, if it’s the biz op that comes with the platform, there are better options elsewhere. It is an MLM, and the commission structure isn’t the best. Unless you fancy recruiting/building a team/asking people to join a platform through your referral link, it’s not for you.

People who thrive with network marketing have been at it for a long time. Most of them are seasoned internet marketers who know how to drive traffic and how collect leads/get sales. If you want to go that route, you should focus on building a strong online marketing foundation.

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