Melaleuca Inc., founded in 1985, is a privately held company known as one of the first mlm companies in the wellness industry. These days the company sells products in the U.S., Australia, New Zealand, the U.K., Singapore, Hong Kong, Japan, Taiwan, the Netherlands and Jamaica. When the company took off their first product was the T36-C5 Melaleuca Oil, known to most as tea tree oil. Through the years the company expanded beyond melaleuca plant extracts and also started selling, personal care items, cleaners, cosmetics and nutritional supplements. A recent addition is the Melaleuca Home Security service.
The company is well known for striving to avoid the abuses and the damage that is often inherent in the networking industry. Chances are that when a Melaleuca affiliate approaches you he really knows what he’s talking about and will present you the business in the most honest way. If you decide to join the company, you will need to produce at least 35 product points per month (=$50 worth of sales) in order to receive your commissions. Besides from your monthly orders you will need to place, you will also need to buy a business kit. Once being a Melaleuca affiliate you receive a reduction of 40% on the Melaleuca products. As you should already know: someone who joins a business without studying the compensation plan should be kept far away from network marketing! So let’s have a look at it.
Melaleuca Compensation Plan
The Melaleuca compensation plan is a 5 by 7 matrix. This means that you need to enrol five people on your first level, those five need to do the same and so on, down to seven levels. The payout (7%) of your commission is based on the group volume you make. You will receive 20% on every first order of a new affiliate personally sponsored by you. After enrolling at least 2 customers you will be earning commissions from level 2 and 3, enrolling 4 new customers gives you access to level 4 and a minimum total of 8 customers makes you illegible for commissions on level 8. Once your organization reached 8 customers you will advance to Director Rank with a potential earning of $500 per month. From then on you have the chance to earn Advancement Bonuses. The biggest pitfall in the compensation plan is the Leadership Points. If you’re not constantly active in your business, there’s a possibility that your pay-out will dramatically be reduced. Another limiting feature built into the Melaleuca compensation plan is the PEG volume. One of the most exciting aspects of network marketing is that your upline can support newbies by placing people beneath them. Now here’s where the compensation plan doesn’t support your business. Melaleuca keeps track of the business that comes from your personal enrolments (PEG = Personal Enrollee Group volume); apart from your Leadership Points, based on a low PEG volume Melaleuca can also limit your payout. In many cases Melaleuca affiliates built a big and strong network, but still don’t receive the big check they deserve.
After being in business for 25 years Melaleuca Inc. is still growing strong. They offer a huge variety of quality products with reasonable prices. For some affiliates the amount of different products can work overwhelming and as a result keep them away from the business. Sadly enough the Melaleuca compensation plan shows many limitations. Although most experienced networkers will be able to generate a good income and deal with the holes in the plan, many newbies show signs of disappointment when some of their Melaleuca paychecks get cut down.