What is the Melaleuca Scam? An In-depth Review

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    What is the Melaleuca Scam

    Have you been asking, what is the Melaleuca scam? Do you think that it is just another pyramiding scheme? To clear your doubts about the company, read my in-depth review about melaleuca.

    Before we jump into the review proper, let me point out that I have always been making reviews about MLM companies. I gave time in doing these because I want to impart to everyone my knowledge and experience towards this businesses . By the way, if you want to start a legit way of earning, check out my review on the #1 recommended work at home opportunity.

     

    What is Melaleuca?


    What is the Melaleuca Scam
    Melaleuca is a network marketing company that focuses on all types of wellness products. This includes health, personal care and eco friendly cleaning products. There mission is to enhance people’s lives through helping them reach their goals. They are in the MLM business since 1985.

    In this review, I will discuss about the business opportunity alone. I am not a Melaleuca member and this review is completely unbiased. I recommend that you read the entire article before thinking about joining this company.

     

    How Does Melaleuca MLM Works?


    Melaleuca offers several ways on how you can earn. Basically your income is determined by three factors. These includes the number of customers you help, the purchases made by your customers, and the business team that you have built.

    The company gives a lucrative compensation plan that you can already start after you signed up and registered. By the way, Melaleuca points out that you do not earn by just recruiting customers. You will be paid when your customers does a purchase.

    Here are the different ways to earn in Melaleuca.

    1. PRODUCT INTRODUCTION COMMISSION

    You will earn up to 27% commission on the first 150 points earned by your customers when they shop in Melaleuca.

    what is the melaleuca

    2. QUALITY CUSTOMER BONUS

    As what I have said earlier, you do not earn in this company by just recruiting. Your downlines should be able to purchase products before you can earn your commission. With the quality customer bonus, you will be able to earn 25$ for every additional quality customer you have. By the way, quality customer is a referral that purchased a membership kit.

    It must be noted that you can only earn this bonus if you reach the director status or higher. You just need to have 8 personally enrolled referrals in order to be in this status.

    3. PERSONAL ENROLLED CUSTOMER COMMISSION

    After you reach the director status, you can even increase your commission rate by being an active director. This means that you need to have 8 – 20 personal customers in order to avail this bonus. The bonus increases to 14% up to 20% depending on the number of customers you make.

    4. ORGANIZATION COMMISSIONS

    Every month that you qualify as an executive director, you will receive an additional 7% commission on every first 150 points purchase of your customer. To become a director, you must have 20 personally enrolled customer and 10 downlines who are in the director status.

    5. CAREER VALUE COMMISSIONS

    Once your customers purchase value pack or career pack you will earn $30 and $50 respectively. But this earnings are again possible if you are in the executive status. This bonus are only valid for the first product purchase of your downline, so this means that even if your customer buys several packs, the first one will be just credited.

    6. ADVANCEMENT BONUSES

    This bonus is somehow enticing to everyone that joins Melaleuca because every time you move to a higher status, you will get a one time advancement bonus. This means that for the first time you advance in status, you will get a bonus. For example, once you become a director, you will get a $100 bonus and is continuously increasing until you reach the director IX where you can earn a sum of $1000.

    7. PACESETTER DIRECTOR BONUS

    You can also earn bonus if your referral advances to director status under the time frame given by this bonus. So if your customer purchases a value or career pack, and becomes a director within the first two calendar months  then you will get a one time bonus that is equal to two times the advancement bonus you get at each status.

    what is the melaleuca

    8. LEADERSHIP DEVELOPMENT BONUS

    When you help your personally enrolled customer to advance to director status, you will earn an amount equal to 50 percent of the advancement bonus paid every time your downline advance in status.

    9. DIRECTOR DEVELOPMENT BONUS

    Earn 10 or 15 leadership points for developing a new director.

    10. MONTHLY CAR BONUS

    Once you achieve a higher status and maintain begin active every month, you can earn this monthly car bonus wherein Melaleuca can help you pay for the car.

     

    How Much Does it Cost to Join?


    what is the melaleuca scamThe starter pack or most commonly known as home conversion pack is worth $299. But Melaleuca suggests that you upgrade to its business pack to further benefit from the business. The business pack includes 10 membership kits, 5 getting started cd sets, 1 renew referral pack, and 100 personalized business cards.

    You can use this business pack to increase your ways of earning. By the way, the membership kit already includes brochure, catalog and compensation plan booklet that can further help you in understanding the business. The business pack is worth an additional $290.

     


     

    How Much Can I Earn?


    If you are asking how much you can really earn in Melaleuca, then let me tell you, it is limitless. However, this high potential of earning is just possible if you are willing to put hard work into your business. But for curiosity purposes, let us have a small computation on how much you can earn assuming that you just joined the company.

    coins-currency-investment-insuranceLet us say, 2 of your customers purchases their first product worth 150 points each. That will earn you 25$ for each customer. Then 1 of your customer buys the value pack which in return earn you a commission of $30. So if we’ll sum it all up, 25+25+30 =$80. Not bad at all. But to remind you, this is just an assumption that you have already learned the sales skill to convince other people about the product you are selling.

     

     

    Are there Melaleuca Complaints?


    For almost 30 years of business, there are several complaints that arise about Melaleuca. But there is one thing that concerns me about the compensation plan of the company: It is just too good to be true.

    I know that it is possible to earn this much in network marketing. I have known several friends of mine who were able to earn extra cash from this kind of business. But, what I am trying to say is that this is not for everyone. Attaining success in network marketing is greatly rooted to your sales skills. We all know that you need to talk to a lot of people, most especially that you are selling a product. Although Melaleuca provides brochures, catalogs or guide about the products and how the business works, it is still not enough to teach how to properly interact with your potential customers.

    If the company just have a one-on-one coaching and support then this would be better. 

     

    Bottom Line


    Melaleuca is a legit network marketing company. It provides various ways on how to earn and promotes eco friendly products at the same time. However, I do not recommend it if you are looking for a job that provides step by step guide on how to achieve success.

    Pros

    • Good Product Line
    • Learn Entrepreneurial Skills

    Cons

    • Somehow Expensive Starter Kits
    • Maintain Monthly Quota to Earn Commissions

     

    Is there other way to Earn at Home?


    I know that you are eager to try the Melaleuca MLM business because you want to find an extra way to earn income. But based on the facts that I have presented, it is clear that this is not the best way for you to earn extra.

    Actually, I also thought before that MLM is the answer to my financial problem. I joined in it when I was in college because I was convinced by their compensation plan. But later on, I realized that it is just too good to be true.

    On the other hand, I didn’t regret joining in it because of them, I have learned about affiliate marketing. I am already on my tenth month in this type of business. I have now my own online business and I am already earning from it.

    If you want to have a solid and clear blueprint on how to be successful in making your own business, I recommend that you check out Wealthy Affiliate. It is most likely has the same concept with network marketing but has better approach because it gives intensive support and training for everyone who wants to achieve success.

    Check out my review on the #1 recommended work at home opportunity.

    If you have more questions, concerns and personal experience about Melaleuca company, please feel free to comment it below.

    Best Regards,

    John Rico

    what is the wealthy affiliate

     

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      12 comments on “What is the Melaleuca Scam? An In-depth Review

      1. First of all, Melaleuca is a wellness shopping club similar to that of BJ’s or Sam’s club. They promote non-toxic household items to name a few and is actually registered for pharmaceuticals. They offer quality products that they manufacture and are safe for your home and the environment. I am a customer. You DO NOT have to purchase those packages to qualify for commissions. Any customer can refer someone and actually be part of their revenue sharing. It appears that everyone jumps on the bandwagon when it comes to bashing a direct sales company instead of doing their own research. They do over a billion dollars in sales annually and have a 95% reorder rate. Once you try their products, you’ll keeping using most. Lastly, they’ve been around for a little over 30 years and has some of the best customer service I’ve ever experienced. Blessings to you all!

      2. Hey Rico,

        Is Melaleuca a new MLM company? It seems like there are a lot of MLM companies nowadays which keep popping out like mushrooms.

        Some are good but its not a career which I would recommend anyone to join. So glad you think the same! I hope you are able to help people make better decisions with this thorough review!

        • Actually Melaleuca is not a new MLM company. It is in the business quite long enough. But yeah, I agree with you that their are plenty of MLM companies that pop up. So people should be cautious about this ones. Some are legit but some are also scam.

          This is the reason why reviews like this are important. So that people will learn the ins and outs of this business before they decide to join in them. By the way, have you tried any MLM before?

      3. Hey John, fantastic site you have here. There is so much information i al,most don’t know where to start lol. Your article about Becoming an affiliate marketer is full of interesting facts and easy to follow. It is great for newbies that want to get into the field and start their own online business. Excellent site I will be recommending your site to anyone interested in getting started.

      4. I have heard about Melaleuca before but only vaguely. Whispers of grandeur and scandal in the same breath. Reading your review has cleared up a lot for me and it just sounds like another MLM scheme. The problem with these things is that admittedly they sound so promising but it’s really hard to make any money and you end up hounding your friends and family which is no fun either. Thanks for pointing out a better program to join. I’ll check that out here in a bit.

        Thanks,
        -Anthony

        • I agree with you men. MLM kind of business should be given so much time and effort before you get to see results. You need to talk to a lot of people including your family and friends before you get a chance to make a sale. Although it is possible to earn a massive income from MLM like in Melaleuca, we cannot deny that it is hard to achieve.

          I prefer internet marketing instead. Although you still need to work your ass of, generally it is more user friendly compared to MLM. When you get a chance, tell me how do you find the program.

      5. Hi John,

        MLMs are great at first sight. They rope you in with the financial freedom dream and then make you promote the (expensive) products to friends and family. If you look at the business model closely, you are tapping the cold market.

        Not everyone wants to buy wellness product, not everyone wants to spend $$$ on lotions and not everyone wants to do business with their families – strange but true.

        If you want to build a sustainable business, tap the hot market like finding out what people want to buy online. It has more upward product trend and higher potential for recurring income.

        • Very well said. I completely agree with your point given. And I can relate with the family thing. I also always get confused why family members have a hard time engaging into business ideas especially if they need to sell something to them. I mean, the compensation platform of MLM is straight forward and somehow can be understood, but when your fellow members sells something to you, they already become hesitant in joining.

          I also want to add up in your statement that if you want to build a sustainable business, you need to get into the hot market. That’s completely true. Why would you choose to invest in something that is not that competitive right?

      6. I’m fortunate enough to not have joined these pyramid scheme companies. There are so many out there and there were several companies that tried to loop me in a couple of times but my paranoid nature stopped me from jumping in and doing more research about them. Thank you for providing people with these information so people will think twice about what they are getting into. One of my past co worker joined one of these companies and it just looks so desperate him trying to promote products and it just makes me cringe how hard he tries to hustle for a little money that he may make.

        • You’re welcome men. It is my primary goal to provide information to those people who wants to know more about the company the want to join. Actually I got this urge to do these reviews because I have also tried some MLM companies before. At that time my greatest mistake is not having enough knowledge about the company and products that I am promoting. And that resulted to my failure in network marketing.

          Although, I know that MLM has high income potential, you really have to know first and learn the ins and out of the company in order to attain the success that you want to have. By the way, have you joined any MLM companies before?

          • No I have not joined one before but I was offered a couple of times. I always get into defensive mode when people are promoting their products intensely or if I have to pay up front to start working. So I’d done more research online to make sure what these companies are about. So fortunately(?), I haven’t jumped into any of those.

            • That’s right men. You really need to do your intensive research first before you join any business opportunity. In that way, you will know the pros and cons of what you are planning to enter. You will be able to weigh if it will do better than harm for you. So, you are not really into MLM huh? What other business do you prefer? Or have you joined any kind of opportunity yet?

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