Is Melaleuca MLM a scam (or a pyramid scheme)? Melaleuca MLM Review


Is Melaleuca MLM a scam

Someone may have introduced Melaleuca products to you as a work-from-home opportunity. For those who don’t know anything about it, I will lay everything bare in this review. Melaleuca has an MLM program for people looking to make some money with their wellness products. Is Melaleuca MLM a scam? You will find the answer in this post.

You will also know about the Melaleuca products, their pros, and cons, and whether you should join Melaleuca’s MLM program.

What is Melaleuca? An Overview

Melaleuca

Melaleuca is an MLM company that is into the sales of wellness products founded by Frank Vandersloot in 1985. The company is headquartered in Idaho, United States of America, and produces and sells more than 400 wellness products, nutrients, supplements, and other products that reduce weight, improve health and enhance nutrition.

In 2017, Melaleuca hit the $2 billion mark in annual sales. The company operates in more than 20 countries worldwide.

How to join Melaleuca?

All the information that you need to get started with Melaleuca can be found in this section.

If you want to join Melaleuca as a customer, you will have to contact the person who referred you to the Melaleuca website. That person is the right person that will enroll you as a customer.

After the enrolment, you will be able to shop on the website.

If you want to enroll as a Direct Melaleuca Customer, you will have to submit a Customer Membership Agreement. This comes at no cost to you. But if you want to enroll as a Preferred Member; you will submit a Customer Membership Agreement and still pay $19.

As a Preferred Member, you will have to order a minimum of 35 Product Points monthly which is equal to $80. You will receive a discount of between 30% and 35% off the regular prices of these products.

Melaleuca MLM Commission Plan

There are two ways to earn a commission with Melaleuca. You can earn a commission from the persons you enrolled or from the persons enrolled by others.

The commissions are calculated based on Product Points that each customer accumulated each month.

  1. Customers you enrolled – If you enrolled a customer, you will get 50% of the product points of a customer’s purchases in the first month.
  2. Customers that were enrolled by others – For customers enrolled by others, you will get a 7% commission from their product point purchases for the customer’s first month. There are 6 levels involved here and your commission increases as you move higher in rank.

The levels are:

  • Product Advocates
  • Marketing Executives
  • Senior Director
  • Executive Director
  • National Director
  • Corporate Director

Melaleuca products categories

Melaleuca Products

It is important to understand the product line of any MLM company that you want to join. This will help you to market and sell the products effectively.

Melaleuca has got over 400 products in 10 categories.

The categories are:

Melaleuca Products_1

How to earn money with Melaleuca?

The most viable way to make money with Melaleuca is to recruit members who are going to make purchases every month.

You will make as much as 7% commission on each of the members you refer. You won’t get any commissions for your referral sign-up fees. Melaleuca has paid out more than $4.5 billion to members over the years.

How much can one earn as a Melaleuca member? 

The amount you can earn will depend on the number of people recruited by you. You can make an average of $200 if you recruit committed people as your downline. But it is becoming very difficult to get committed people to join an MLM business.

How to get started with Melaleuca?

To get started you have to visit the website at https://www.melaleuca.com/ and click on “BECOME A MEMBER TODAY”

Warning from the Financial Trade Commission to Melaleuca

The Financial Trade Commission (FTC) issued a warning to Melaleuca on the 5th of June, 2020. FTC told Melaleuca to stop their representatives from making bogus claims of making a huge amount of money as they were scheming to recruit more people during the COVID-19 pandemic.

Frequently Asked Questions

1. Is Melaleuca a pyramid scheme?

Answer: No, Melaleuca is not a pyramid scheme. It operates an MLM business model which involves the recruitment of people.

2. Are the products produced by Melaleuca safe?

Answer: The products are very safe and of high quality.

3. Is Melaleuca a reliable and legit company?

Answer: Yes, Melaleuca is reliable and legit since it has been operating since 1985.

4. Are all the products natural?

Answer: Yes, the products are natural and safe for the environment too.

Who is it for?

Melaleuca is for anyone interested in making money from home selling products. This makes it ideal for students, nursing mothers, and single mothers.

Pros

  • Great products – One of the selling points of Melaleuca is its quality products. The products are effective and loved by many users who buy the products repeatedly.
  • The company owns the products – Many MLM companies just rebrand products and sell. But in the case of Melaleuca, the company owns and sells the products. The company also invests in research and development. This is a great advantage.
  • Plenty of products – There are more than 400 products in different categories. This means there is more opportunity to make more money compared to other MLM companies that sell just two or three products.
  • Long history – Since the company has operated for more than three decades, it makes it reliable and trustworthy. Better Business Bureau (BBB) has given an A+ rating to Melaleuca.
  • Minimal investment is required – Investing in the Melaleuca MLM won’t cost you a fortune. It requires minimal investment to get started.
  • Environmentally-conscious – It is a big plus that Melaleuca is an environmentally-conscious company. The company produces eco-friendly cleaning products and don’t add harmful chemicals to their products.

Cons

  • Expensive products – The products are expensive even though the products are produced by the company. This will discourage many people who cannot afford them.
  • Low income – Many of the members don’t make money. Most of them pay from their pocket just to stay active.
  • Saturated products – You may find the same products that you are selling everywhere in your locality since many people are selling the products.
  • You cannot sell the products online – Part of the agreement is that you cannot sell the products online. You are only allowed to do direct selling. Not selling online can reduce sales.
  • The business is run secretly – It is safe to say that Melaleuca is run like a cult. The prices of the products are not known and its compensation plan is a bit shady. I had to go the extra mile to find out their compensation plan and other information that can help you make an informed decision.

Is Melaleuca MLM a scam?

Melaleuca is a legit company that has operated for 36 years. This means it has weathered the storm over the years. This makes it legit and not a scam. If it was not a legit company, it would have been shut down long ago. The fact that it is rated A+ since 1987 by BBB shows it is credible.

Conclusion: Is Melaleuca MLM recommended?

No, it is not recommended since it runs an MLM business model. Recruiting people is a major factor in MLM. If you cannot recruit people massively, this business is not for you.

Apart from that, there is so much secrecy about the operations of the company.


4 thoughts on “Is Melaleuca MLM a scam (or a pyramid scheme)? Melaleuca MLM Review”

  1. Although some MLMs like Melaleuca  are legit business but my challenge is the headache of re ruiting some one before you make a decent I come. Worst of it are high valued products that are difficult to sell. Unfortunately Melaleuca falls into this category. Although they sell good health products but the high cost might make recruiting others difficult. It can honestly be frustrating. I have done it before and got frustrated 

    Reply
    • Hi Parameter,

      Thanks for sharing your valuable comments on the Melaleuca MLM program. Yes, it is difficult to recruit and continue working with any MLM program. MLM is best suited for the people who can achieve big recruitment and bring massive sales.

      Reply
  2. Hi Arif
    Thanks for sharing your review on Melaleuca MLM Program. Though it is 36 years old company and stood against the time, I still feel uncomfortable for joining a MLM Company. Basically recruiting friends and relatives has a limit at some point of time and you need to go online to expend your wings. But as you confirmed, these products can not be sold online. Maybe MLM is not for everyone.
    Warm Regards,
    Gaurav Gaur

    Reply
    • Hi Gaurav,

      Thanks for sharing your valuable comments on the Melaleuca MLM program. I agree MLM is not everyone’s cup of tea unless you have skill in direct selling and recruitment.

      Reply

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