Is Melaleuca A Good Business Or Not?

Melaleuca (The Wellness Company) has become one of the largest and well-known network marketing companies ever. They offer a variety of healthy self-care and home-care products, as well as an income opportunity if a person becomes a distributor and sells their products.

However, there are some very real concerns and issues about starting or participating in a Melaleuca business. In this article, I will provide and unbiased review of the pros and cons of developing a Melaleuca business, and see if we can find out whether Melaleuca is a great opportunity...or a great scam.

Melaleuca - The Good

The company began under the name "Melaleuca Oil" with the offering of a single product called "T36-C5 Melaleuca Oil" which was formulated from extract of the melaleuca tree, commonly known as tea tree oil. A previous Melaleuca-based company by the name of "Oil of Melaleuca" operated as a standard multi-level marketing company whose literature made health claims the FDA would not approve. The company sold products whose uses and benefits were not verifiably documented. There were also exaggerated claims of the efficacy of the active ingredient, tea tree oil, and claims that the company was a sole source of the same, creating an impression of privileged access to a unique product.

In 1985, the company was taken over by Frank L. VanderSloot who dissolved the previous company, created a new marketing plan to support consumers, immediately launched an initiative to bring the company's product line into compliance with FDA regulations, and started this new company under the name of "Melaleuca, Inc.".

The original message that Melaleuca used to build their name was that they could make your home safe for your family. The chemicals and household cleaning items found in the average home count for the bulk of reported deaths of infants and toddlers, and their products offer a safer alternative for parents that want peace of mind.

Melaleuca - The Bad

For distributors that start a Melaleuca business, they will find they are paid out with a residual income compensation plan. The primary way to generate revenue is to find other distributors and build a downline with Melaleuca.

The first flag that we noted was that Melaleuca encourages their distributors to purchase business opportunity leads (or bizop leads) to grow your organization. The problem with opportunity-seeking leads is that most of the time, they are not really looking for an opportunity. The process works like this: you are out surfing the web, looking at different sites, and you suddenly see a pop-up ad to win a free toaster is take a quick survey. If you take that survey, you will be asked to submit your name and phone number to get your free toaster. The minute you fill out that form, you actually become an opportunity-seeking lead!

This is why that if someone were to use opportunity-seeking leads, they find that most of the leads had no idea how they got listed. These lists are constantly re-sold, so that by the time the average distributor goes through the list, four other distributors have already gone through it.

Melaleuca - The Ugly

The sad thing about growing a Melaleuca business is that if the distributor does not want to use opportunity leads, they are encouraged to go after their "warm market" or their friends and family. They are told to hand out free product samples, business cards, brochures and flyers, and if the distributor ever becomes discouraged, they are simply told to "stay motivated".

The fact is, someone could absolutely make tons of money marketing healthy household products - if they know how to market effectively. Trying to build a six-figure income on the backs of friends, family, and work associates is more than just a tough sell - it is irresponsible of the trust and respect that are a part of those relationships. Trying to "sell" and convince people on the legitimacy of your product and opportunity is much less fun and much less lucrative than talking to people that have already expressed a direct interest in what you offer.

In closing, I would say that starting and developing a Melaleuca business is lucrative if someone knows how to market effectively. It is not a scam, but like any business, success will be determined by the skill-set of the marketer. Melaleuca is definitely not a lottery ticket or a stock option - meaning, you do not just buy in and wait for a payout.

If someone does not have the first clue on how to market effectively, then I would suggest they either learn how to be an effective marketer, or else just use the products and leave it at that.