To establish whether or not Melaleuca is a scam it is necessary to look at the Melaleuca company, the Melaleuca business opportunity, and the Melaleuca products. It is important to have a balanced view in determining whether Melaleuca is a scam or a real business opportunity that you can make money with.
Melaleuca was founded in 1985 by Frank L.VanderSloot and it derives its name from the tea tree (Melaleuca alternifolia). They retail a range of in excess of 350 products in product areas such as Vitamins & Supplements, Food & Weight Loss, Cleaning & Laundry, Health & Beauty, Pet Care and more.
When considering investing in a home business opportunity it is important to have the right knowledge so you don’t buy into a scam and at the same time you don’t want to read the wrong information and come to the wrong conclusions and let a genuine home business opportunity pass you by. The internet can be helpful in providing information that you might not have known but at the same time it can also provide misinformation.
[adsanity_group num_ads=1 num_columns=1 group_ids=62 /]For Melaleuca and whether their business model is a scam or a real home business opportunity my verdict is that it is a for sure a real business opportunity. It is important for you know that I in no way affiliated with Melaleuca – I have not ever recruited people into a Melaleuca downline, and I have not ever been recruited into someone else’s downline. Furthermore I have never used the Melaleuca products. You may be thinking that I am not in a position to comment on the Melaleuca opportunity. The reasons that I am able to determine if Melaleuca is a scam or a real opportunity is because I am impartial, because I have not lost or made money with Melaleuca . Also I have had experience in the Network Marketing MLM business over a 20 year period so I understand the industry. And more importantly I founded and built up a business that did over $500,000,000 turnover of business over a period of just under 20 years – so I have experience of big business and understand what to look for in a company to determine if they are a proper business.
For clarity the full definition of a scam is, according to Merriam-Webster Dictionary is ‘a fraudulent or deceptive act or operation’. It is important to keep focused on this because often people will label something a scam due to their own failings to not make any money with the business opportunity.
Melaleuca is a privately owned and operated company that employs over 3000 people and has a claimed annual turnover of in excess of $1 billion. There doesn’t appear to be any publically available financial data to substantiate this without paying for it (a company like Dun and Bradstreet can provide this for a charge). Melaleuca currently operate from the following countries: North America, Taiwan, Japan, Korea, China, Malaysia, Singapore, Australia, Hong Kong, New Zealand, Germany, Austria, the Netherlands, Ireland, and the United Kingdom. The business model that Melaleuca use is the MLM or Network Marketing home business model. The Melaleuca model uses a global network of independent sales representatives to sell the products.
In the US in the late 1970’s the FTC challenged this model on the premise of it being a pyramid scheme. After a long court case the FTC lost and the MLM or Network Marketing got official approval.
The operation of a company that has an annual revenue that is over $1 billion requires compliance and biding with many laws. Furthermore Melaleuca operate in many countries around the world where they have to comply with various international laws. It would be virtually impossible to have some sort of scam operating at this level of business.
The Melaleuca prdoucts are produced so they don’t sacrifice quality just to make them the cheapest. As a result they are not the cheapest but they are excellent value for money. The quality of any product can always be determined by how often customers come back and buy again – Melaleuca has a reorder rate of 95 percent which says a huge amount about the products.
[adsanity_group num_ads=1 num_columns=1 group_ids=61 /]With the Melaleuca business opportunity as I understand it you make money from commission on the sales of the end products by your team. There are also a number of bonuses that relate to size of your organisation. The comp plan is a 5 x 7 matrix structured compensation plan where you get paid down to 7 levels. With this type of plan the residual income produced can be very lucrative but it can also dry up quickly if somebody in your organisation isn’t pulling their weight. I don’t intend to explain the compensation plan in any more detail because it is too complication and it really isn’t what I intended this article to be about. As with any MLM opportunity you have to fully understand what it is about prior to getting involved so you know what have to do to make money.
In doing the research for this article I noticed that a lot of people supported Melaleuca’s claims about the quality of the product. As usual, and as to be expected it is possible to find people who complain about the opportunity and those who praise it. When you look at the comments left by people it is important to bear a few things in mind. First people are more likely to complain than they are to write positive comments. Secondly you also have to consider that the number of people who are complaining is relatively small – the company sells $1 billion – that’s a lot of people who are happy. Third when people do complain you will notice that they always blame the company but they always forget to tell you the bit about what they didn’t do to make it a success. I would suggest that you don’t focus on the failures unless you want to be like them. All you need to know about is what is possible. Then do what it takes to make sure that you become one of them. Remember in life most people aren’t wealthy so if you spend your life following the unsuccessful people you will stay like them. Some people don’t limit themselves in this way.
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