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 would help.
Some call it a scam, some a pyramid scheme, and then there are some loyal supporters of the Melaleuca platform. It's always a good idea to do some research of your own since it can help you avoid scams, and aid in finding legit opportunities that don't disappoint.
With that said, let's get started.
What Is Melaleuca
Melaleuca is a multi level marketing 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.
Unlike most MLM programs out there, Melaleuca is a bit of an outlier. Similar to Tranont, it's based in Utah as that offers a better environment for network marketing businesses to thrive because of a lack of government interference.
In case you wondered, the name is derived from Melaleuca alternifolia, a tee tree.
The company offers hundreds of unique products and use favor the traditional word of mouth selling. Just order a product online, and it will 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:
- Be a regular customer and purchase the products at the retail prices.
- Become a preferred customer and save 30-50% depending on the products.
To be a preferred member, it's $1 for the first year, and then $19/year second year onwards. To maintain your preferre status, you have to use 35 points every month. Products will be autoshipped to your place once you're signed into your account.
With the auto-shipment, you can either have 35 points a month 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 that Melaleuca has to offer.
Also known as forced purchases, you can either select the products you want and have them ship to your door. If you fail to do so, the company may send you random products just to meet the criteria. These may be the ones the company wants to get rid of (hence the backup order).
If you're not content with the membership, you can cancel anytime. Just that you'll have to 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 in how they operate, and this is one of them. Moreoever, since the cancellation is a bit of a headache, more people will tend to stay onboard 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 just 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.
Is Melaleuca a Pyramid Scheme or a Scam?
No, Melaleuca is not a pyramid scheme or a scam. The company sells their products and prefers old-school word of mouth referrals. Majority of the customers prefer to stay customers, and only some of them opt to promote it as a business opportunity.
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.
Not all MLM companies are pyramid schemes, here's a video that explains just that:
The Product Line
The company has over 400 different products. However, this review is more about the business opportunity that they have to offer (how to make money with them).
Despite their claims, there's a fair chance not all their products are environment-friendly, and may have some added chemical. There haven't been any scientifical research on the same (yet). Here's a few of their popular product categories:
This category contains nearly 300 products ranging from lip treatment to makeup remover to brow pencil. 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 you are a preferred customer. It will cost you 15 points.
In this category, you'll find supplements like whey protein, peak performance packs, snack bars savings packs, and multi-vitamins.
For instance, Peak performance bone joints, one of their premier bone and joint product costs $70 to regular customers. With the annual membership, you can save up to 40% on the pricing.
Household category has three sub-categories:
- Cleaning and Laundry
- Pet care
- 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).
In the bath section, you can find body lotions, gums, toothbrushes and so on. The toothbrush costs $4 to regular customers, as 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.
Income Potential With the Biz Op
Unlike other multi-level marketing programs, you don't have to recruit people into Melaleuca. You can only refer people via word of mouth referrals. If one of your referred people make a purchase, you'll earn 20% of the product price as commissions.
Melaleuca's support team is fantastic and is willing to help you out if you run into any issues.
You can earn up to 7 levels - 7% on each level below yours thanks to the MLM structure. Unless you're extroverted, and love team building/direct selling/networking, you won't enjoy this.
Final Words - Is Melaleuca 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, they don't encourage recruiting either.
It's the old-school word of mouth referrals that they heavily use, and there's nothing wrong with this approach. If you're considering the platform for the products, by all means, go ahead. If it weren't for their products, we won't be recommending the platform.
However, if it's the biz op that comes with the platform, there are better options elsewhere. Not only is it an MLM, their 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 to 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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