Melaleuca Inc. is a wellness company that provides different nutritional, cosmetic and skin care products that was started in 1984 by the Ball brothers.
After its initial success Frank Vanderslooth joined in as the CEO in the year 1985; Under his leadership the company saw a tremendous growth and became one of the frontline 'work from home' companies in America during 1990s. This company has now established itself in ten countries worldwide and has now become an 887 million dollar industry.
Unlike other 'work from home' companies which are MLM based this company employed a 'Consumer Direct Marketing' model.
They have been producing health, nutrition, home, personal care and cosmetic products for the past two decades.
One of the major criteria customers search for in any health related product is its safety aspects and side-effects. With Melaleuca one can be sure that there won't be any side-effects as their products do not contain any harmful chemicals. All health related products such as pain relievers; antacids, vitamins, sun care and immune-support are available. Nutritional shakes, protein bars and weight loss products are also available. Their home products are eco-friendly and do not any harmful chemicals. The basic home products such as dishwasher soaps, glass cleaners and other laundry products are provided by the company.
How to Become a Melaleuca representative?
New customers can either register through their sponsor or they can call Melaleuca customer care. They can either opt for a 'Customer Membership Agreement' (Direct customer) costing $25 or for a 'Marketing Executive Agreement' (preferred customer) costing $29. The second option is for those who are looking for a money making opportunity.
The compensation plan is a 5x7 model, it means that one must build a team of 5 members and then each of those 5 members must build their own leg of 5 each. The company does not pay for new enrollments it only pays a 7% commission per purchase by representative's down-line. Unlike other MLM companies Melaleuca will always give its representatives a fixed 7% commission on each purchase made by all down-line members i.e. representatives get paid 7% for their 7th down-line level.
In order to receive the commission each representative has to stay active. For staying active a representative has to make a purchase of 35 product points every month.
How can one succeed?
Most Melaleuca representatives target only their close acquaintances and they do not see a fast growth. The only way to achieve success in any MLM is by marketing the business to the maximum. This way one can ensure that, he reaches to all those who are willing. If someone is totally dependent on his acquaintances then it's quite difficult to see any large gains. Facebook and twitter are two major sources for marketing.
According to the 2009 stats all Melaleuca representatives who reached the status of Senior Director and above earned an average yearly income of $67,600. The highest revenue earned that year was $278,200.
For newbies the company has started to give many bonuses and points which have maximized the earnings. If any newbie can reach the designation of a Director in first month then he will earn about $600 that month and if he achieves the rank of a Director 2 in the second month then he will earn $800.
Similar to all MLM companies this company provides a money making opportunity it does not mean that the company will pay money just for signing up. Representatives earn money based on their and their team's hard work.