Before you sign up with Melaleuca, we have compiled this comprehensive Melaleuca review to help you make a decision on whether to join. This will give you the details you need to determine if this opportunity is a good one or if there is a potential Melaleuca scam.
This Melaleuca review will cover all of the pertinent components of this company and getting involved with them. The knowledge that you gain will ensure that you make an informed decision about Melaleuca.
What is Melaleuca?
Melaleuca is a multi-level marketing company. The company refers to itself as the “largest online wellness shopping club.” They sell a variety of products that they say are more cost-effective compared to brands that you can find at the grocery store.
They state that their home, nutrition and personal care products are also safer than what you get at the store. All products are sold by distributors for the company using a direct sales approach.
History of Melaleuca
Knowing more about the company’s history is important for determining if there is a possible Melaleuca scam. Frank L. VanderSloot founded Melaleuca. He also serves as the chief executive officer for the company. It was in 1985 when he founded the company.
Melaleuca operates in the United States with its headquarters in Knoxville, Tennessee and Idaho Falls, Idaho. The company started out as a multi-level marketing company and continues to use this model to sell their products directly to consumers.
From 1990 to 1994, this company made the Inc. 500 list produced by Inc. magazine. In 1994, this magazine inducted Melaleuca into its Hall of Fame.
In 1998, the sales flattened. According to VanderSloot, this was due to some of the company’s senior directors not recruiting new distributors, but instead choosing to live off of their residuals only.
In 2004, the company’s revenue started to grow again. This is believed to be due to a new policy that reduced payouts to distributors that did not actively recruit new distributors.
Over the years, the company expanded into the international market. In 2004, they reported that approximately 25 percent of their revenue came from Korea, Australia, the United Kingdom, Taiwan, Japan and New Zealand.
In 2011, Melaleuca reported that their gross sales exceeded $1 billion and that by 2012, they had about 2,000 employees running their Idaho Falls office.
Scrutiny and Violations
In 1991 and 1997, the company faced scrutiny involving their marketing practices. There were various marketing violations investigated by the Idaho attorney general’s office, Michigan regulators and the US Food and Drug Administration. In 1991, the company received a cease-and-desist order regarding the laws in Michigan that prohibit pyramid schemes.
In 1997, the US Food and Drug Administration warned the company about two of its supplements. The FDA said that regarding these two supplements, the company made false and misleading claims.
Are Melaleuca Products Good?
Melaleuca has more than 400 products in the household and cleaning, nutrition, cosmetics and personal care categories. The company says that their Peak Performance vitamin pack, environmentally-friendly home cleaning products and the Renew dry skin therapy are among their most popular products.
Their products are typically more expensive than similar products from other brands. The ingredients do not differ much from similar products that are on the market.
Overall, the reviews from consumers are mixed regarding the quality of the products. Some people feel that Melaleuca products are superior while others state that they are mediocre. Most reviews on the products are either neutral or positive.
How Does Melaleuca Work?
You can sign up to become a distributor with this company. This allows you to gain access to their products so that you can sell them directly to consumers for a profit. You can also earn money by recruiting more distributors to sell products.
You can earn money when you enroll customers or when your downline enrolls customers. The first month after a customer enrolls, you get 50 percent Product Points on the items that they purchase. Start the second month, you receive a commission that varies.
The commission structure includes:
- One to seven customers earns you seven percent
- Eight to 19 customers earns you 14 percent
- 20 or more customers earns you 20 percent
In order for people to earn a commission on what they sell, they must order a minimum of 29 points of product every month.
When your downline enrolls customers, you earn seven percent of the Product Points.
There are also bonuses you may be eligible for as you:
- Advance your status
- Help your downline advance their status
- Increase your customer numbers
There is also the potential for a monthly car bonus for those who are eligible. This ranges from $500 to $1,500 per month. As your downline advances, you have a chance to earn a mentoring bonus too.
How Much Does Melaleuca Cost?
To become a distributor, you have to pay $29. This is said to be a one-time fee and that there are no monthly fees for distributors to pay.
Once you become a distributor, you do have to purchase the products that you will sell. The costs associated with this will depend on how much you buy.
Every month, distributors must purchase a minimum of 35 points of products. This comes out to about $50 to $100 per month depending on the products that you purchase.
How Much Money Can Be Made with Melaleuca?
A big part in determining if there is a Melaleuca scam is exploring how much money you can make by being a distributor with this company. The following represents the annual earning income statistics that Melaleuca released for 2016/2017:
- Advocate: $93
- Advocate 2: $246
- Advocate 3: $555
- Director 1 and 2: $2,093
- Director 3: $9,079
- Director 4 and 5: $14,274
- Director 6 and 7: $24,971
- Director 8 and 9: $35,650
- All senior directors: $63,060
- All executive directors: $163,947
- All national directors: $317,993
- All corporate directors: $1,185,073
These numbers are the total amount earned from September 2016 to August 2017 for each tier and each figure shown are averages. For example, the average amount of money earned by those at the advocate level in 2016 through 2017 was $93 for the entire year. This information shows that about 0.42 percent of distributors earned enough money to replace a full-time income.
What Other People Are Saying in Their Melaleuca Review?
Here we will look into the experience that other people had with this company. This is important for figuring out if there is a Melaleuca scam. It also helps you to see if this business opportunity is one that fits within your preferences and needs. The following sources have reviews from former and current consumers:
- Better Business Bureau
- Blog comments
Better Business Bureau
In 1987, Melaleuca was accredited by the Better Business Bureau. They have an A+ rating. Out of 127 reviews, they have 3.5 our of 5 stars at the time this Melaleuca review was written.
Many reviews say that the products are good. Several reviews appear to be from distributors that are happy with their experience.
The negative reviews are largely associated with not getting enough support as a distributor. A few reviews say that the company charged their credit card after the person cancelled their subscription.
The company has 4.5 of five stars on Glassdoor from 320 reviews at the time this Melaleuca review was compiled. It appears that most of these reviews are from people who work for the corporate offices.
Most reviews say that they are happy working for the company. They feel that they get adequate support from the company and their coworkers. However, they also state that the company has very high standards that can sometimes be difficult to live up to.
On this website, Melaleuca has 3.9 stars out of five. This is out of 182 reviews at the time this Melaleuca review was compiled. Most reviews appear to be from people working for one of the corporate offices.
The employees of the company appear to be mostly happy with their experience working for one of the corporate offices. They give high marks for work-life balance, advancement and job security, benefits and pay, company culture and management.
The few negative reviews are associated with poor management. One review said that their management team was too focused on vanity and that they had unrealistic expectations about employee productivity.
On Facebook, the company does not have a Melaleuca review section on their page. They also do not have a specific place for member posts.
Some people comment on the company’s posts on their primary wall. This is a mixture of people talking about the company’s products and trying to recruit new distributors.
There are several complaints on RipOffReport about this company. The reviewers talk about how hard it is to cancel a subscription with this company. Many people state that after cancelling, their credit card was still charged. They further say that the company made it very difficult to get a refund if they issued one at all.
Other complaints talk about the company wanting more money than they tell you initially. These reviews talk about being told about the initial fee, but once the person becomes a distributor the company tries to tell them that they need to spend more to remain active or earn a commission.
Other complaints are about the products. Several people say that they are low in quality, especially for the price.
On this website, the company has three stars out of five. This is from 75 reviews at the time this Melaleuca review was compiled. The reviews come from distributors and those who only buy the products.
Several reviews state that the presentation they received from distributors was too predatory. These reviews also say that many distributors provide false information when they are trying to sell products or recruit new members.
The reviews from distributors are mixed. Some say that being a distributor is a good opportunity while others feel that it was a waste of time due to subpar earnings.
This company has five stars on this website. This is from 283 reviews at the time this was written. The majority of the reviews appear to be from people who buy and use the products.
Many reviewers say that they are very happy with the products. However, there are several comments stating that the company has poor customer service.
A few comments feel that the company makes misleading claims. These commenters also said that there are better products on the market that cost less.
There are several blogs that discuss whether this company is a scam or not. The comments are a mixed. Some state that they are happy as a distributor for the company while others commented that the company misled them about the earning potential.
Most of the people who are praising the company are also trying to actively recruit in the comment sections on blogs.
Our Melaleuca Review Verdict
This concludes this Melaleuca review. There does not appear to be a Melaleuca scam. We mark becoming a distributor with Melaleuca as “recommend with caution.”
This recommendation is because while you can earn some money, most people are not able to earn enough to replace a full-time income.
RECOMMENDED WITH CAUTION
(Learn more about our rating guidelines.)