Now lets get down and dirty with the facts. With Melaleuca you do get paid in levels. When you refer a Preferred Customer to Melaleuca every product point order that person places each month makes you money. So, if that person orders 50 product points then you are going to get paid from $3.50 to $10 on that person`s order alone. This may not seem like a lot, however, you can get paid on seven referral lines of customers. This income is also a residual meaning that every month the customers you have referred place an order you get paid from 7%-20% on every order placed. With MLM most or all of your income is based on commissions. With CDM, you are paid on commission, bonuses, monthly revenue sharing, and if you reach a certain level you can get a monthly car bonus.
Is Melaleuca a closet MLM Company?
May 22, 2006 by Ty | 16 Comments
In Network Marketing Companies
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Philena Rush on August 2nd, 2006 at 1:37 pm
Love Mela. It’s the best. Getting my Fast Track Team together as we speak. The thing I love the most about the system is the financial risk is very low. And I hate for people to lose thousands of dollars trying to make something work when it’s not for them. At least they can still be happy customers no matter what, and it takes the pressure off customers that want to build a business with referrals. When it comes to products, this is the way it needs to be, and alot of newer companies are copying Mela’s business model. Don’t get me wrong, MLM is still a solid industry, but too many people fail with it, and they are stuck with thousands of dollars of products in their garages or basements. And when the companies go under like SeaSilver or Bioperformance, they are lost.
Margaret on August 8th, 2006 at 9:05 am
I think Melaleuca products are great.
I just don’t understand why they are saying Melaleuca is not MLM company, 5×7 matrix, seven levels, it looks like multilevel to me.
Miles on November 27th, 2006 at 3:44 pm
Who cares? We’re just talking semantics here. People seem to define MLM in different ways so if you want Melaleuca to be an MLM company, then you’ll pick a definition that suits your beliefs. The reverse is true if you’re a company trying to differentiate yourself from companies that are well-known MLM’s (Amway etc.)
From what I’ve read, it seems like Melaleuca is a hybrid–it has important distinctions from MLM companies yet it’s not a “traditional” business model either. That’s just the way I see it though.
In the end, this is a silly thing to be discussing. The term “MLM” has been watered down a lot to the point that you could make a case for calling just about anything multi-level-marketing. It’s kind of like saying “I work with computers.”
To me it’s just like people — if someone doesn’t want to be called “Asian-American” because for whatever reason they don’t like to be boxed into other people’s stereo-types, then it personally doesn’t cause me any trouble to respect that.
Sufia Byrd on March 3rd, 2007 at 5:58 pm
There is definately a difference between Melaleuca and MLM companies. MLM’s solely depend on other business builders to expand thier business, whereas with Melaleuca, you’re simply looking for customers and the business builders will eventually surface. I would always ask this question, “Once you take away the money side of the business, do you still have a phenominal product?”
Ty on March 3rd, 2007 at 7:12 pm
Sufia,
Melaleuca is an MLM. Many people in MLM operate exactly as you described. The only difference is that many Melaleaca reps try to hide the reality of what they do.
Antonio on August 27th, 2007 at 8:18 am
Melaleuca been around for years. MLM side of it. The residual income of MLM. Most are going MLM. Most important the products. If they like the products you have a customer for life. I think the products is the most important. Another factor the pricing.
Steve L. on March 26th, 2008 at 12:28 am
Melaleuca is w/o a doubt an MLM. Although I have not yet tried their products, I like their overall product philosophy. However, I have a REAL BIG problem with corporate saying they are NOT an MLM. They pay on multi levels….they have downline/uplines….That is MLM. I see no problem in them saying Consumer Direct Marketing…because that is true…but DON’T say they are NOT MLM. This may sound silly to some, but that is what is keeping me from becoming a preferred customer. Also, by not offering a real way for someone to purchase at retail via a distributor website, isn’t this just a wholesale buying club? The retail prices are just for show. …so in essence, the preferred customer price is the “retail” price. Make sense?
jackie on June 21st, 2008 at 4:18 am
ok, so I seee the debate over MLM is still around? Melaleuca does not require you to have stoc piles of things on hand for people (piled in your basement or attack) things that you will be lucky if you can sell at a flea market to get a fraction of your money back. In a Matrix (not pyramid) you don’t have break offs you keep your customers for as long as they are customers. Your business grows with how much effort you put into it. The major thing is ….The Prouducts are flippin awesome! So even if you don’t want to go into the business…the preferred customer is the way to go!
Tina on February 5th, 2009 at 11:11 am
It’s really easy for the casual observer to confuse Melaleuca with a tradional MLM, but they are NOT. Regardless, not all MLM’s are bad but most often people get hurt, don’t make very much money or even lose money. Yes, Melaleuca does pay residual commissions throughout seven referral generations, BUT you cannot get rich off of others work. It doesn’t matter who got in first, anyone can make more money than the next, you have to HELP others to advance and produce leadership points to earn on all 7 generations continually. There are NO break aways and technically no UP or down line. They have a truly unique business model that others are trying to copy and just CAN’T. There is no RISK and no way for anyone to get hurt, whether just as a preferred customer or building a business. Regardless of any debates, you cannot deny the facts and those are that their products are amazing and so is the opportunity. I LOVE THIS COMPANY! If you really wanted to get to know them and what they stand for, check out: http://www.melaleuca.com/introduction
In reference to another guys comment about retail vs. preferred customer. You can shop at retail prices w/o membership benefits. DO YOUR HOMEWORK!
Tedd on March 23rd, 2009 at 12:57 pm
Sounds like Tina knows what she’s talking about!
Max in MD on February 11th, 2010 at 6:24 pm
Yes, it’s MLM.
No two MLMs are exactly alike, and MLMs aren’t strictly good or bad. They all have merits and downfalls. But to say that Melaleuca isn’t a “traditional” MLM (like Amway) and therefore isn’t MLM is like saying that Burger King isn’t exactly like McDonald’s, therefore it isn’t fast food.
Not all MLMs require stockpiling product that you can’t sell (although, if you are with Melaleuca and have noticed that you have to purchase 35 or 75 points worth of product EVERY month, you may experience your own stockpile effect!) In fact, many MLMs in recent years have done away with personal distribution, in favor for online and catalog ordering.
Do you know why there is so much MLM out there? Because it works!
“Revenue sharing”, “Customer direct”, blah, blah, blah. It’s still Multi Level Marketing (or Network Marketing).
Yes, Melaleuca is MLM, and the fact that they refuse to admit it makes them and MLM look bad. Why not call it what it is and redeem MLM from the stigma by being a company which does MLM well!
Ron on August 28th, 2010 at 1:51 pm
If you can’t understand a real business when you see one than stay out of any business that you don’y understand period.There are differences between MLM and Melaleuca.Period.
Ron on August 28th, 2010 at 1:53 pm
Besides MLm stands for Most loss Money if you can understand that term when you can make real money with real businesses.
Lawrence on August 29th, 2010 at 8:48 pm
Don’t be embarrassed about MLM. The model is still one of the most powerful models available today to create a substantial income with very little risk. Read Robert Kiyosaki’s book Business of the 21st Century. There are many benefits from being in MLM beyond the superior products and the money you can earn. Personal development, communication skills, and life time friends are just a few others reasons.
The great thing about MLM companies INCLUDING Melaleuca, is that you don’t have a boss to tell you what to do. There is no one standing over you to make sure work gets done. You have no one to be accountable to if you decide not to work any particular day or week or month. The bad thing about MLM companies INCLUDING Melaleuca, is that you don’t have a boss to tell you what to do. There is no one standing over you you to make sure work gets done. You have no one to be accountable to if you decide not to work any particular day or week or month.
You see, most people are used to working a time clock. When they clock in, they are getting paid regardless if they take a personal phone call, check their email, or talk to friends at the water cooler. When they clock out, they get paid for their time. With MLM companies, including Melaleuca, you get paid on results. It is all you at the beginning. Eventually, you leverage your income off the efforts of others just like a Real Estate Broker will leverage other agents, or like a dentist will leverage dental hygienists.
You can make money with an awesome product and a terrible comp plan. You can make money with a terrible product and an awesome comp plan. What really matters is that you are passionate about what you do and you take the time to learn, progress, and grow. The people that get hurt in MLM do so for specific reasons. #1 – They didn’t get trained properly. #2- They were not consistent. #3- They quit too early. #4- They did not gain the new skills necessary to try a business they were not experienced at.
You can learn to be successful with any company. Don’t blame your sponsor, and take responsibility for your own growth. Find a mentor. Read Beach Money by Jordan Adler. Realize that some of your family and friends may not join you in your business, and that is ok. We are in the shipping and receiving business. First you lean the shipping part: Friend-shipping, leader-shipping, relation-shipping, and partner-shipping. When, and only when you get the shipping part down, then you get to the receiving businesses, and of all the great things you get to receive, one of them happens to be a check. Do people fail at MLM’s? Yes, but do you know what? People do stupid things all the time. Some people drop out of school. Some people quit their jobs. Some people are lazy. Some people are shy. Some people are rude and people don’t like to be around them. Some people don’t take showers very often. Some people start small businesses. Some people quit small businesses. Some people purchase way too much car or home than they can afford. Some people pay stupid tax and buy lottery tickets. And yes, some people fail at MLM. But some people finish their education, and learn, and grow, and develop, and become a better person, and become successful at anything they try….including MLM. It’s a fun ride. I wouldn’t have it any other way.
Jim on September 19th, 2010 at 11:41 am
Lawrence, you said it awesomely. The reason almost everyone who failed in MLM did fail is because they didn’t do it right. They expected a get-rich-quick plan where other people would magically do all the work and insert new customers and distributors into their downline for them. And when this didn’t happen and they realized they are the ones who need to come out of their shell and talk to people about their products and business plan, the suddenly choke up and run away screaming, “Pyramid Scam! Pyramid Scam!”
The fact is, MLM works as a business model. Some MLM companies are better than others. Amway has been around for years and their system obviously works. Personally, I thought their products were pricey when compared to equivalent store brands and my would-be uplines IBO’s in many presentations admitted that one would not really be saving money simply by switching brands to Amway, then they launched into telling me why that is the reason I need to start it as a business and recruit everyone and their dog to do the same. Amway distributors’ age old stereotype of inviting everyone to a bar-b-que which deceitfully was designed to be a business presentation is what makes the MLM industry look bad. So if Melaleuca wants to sidestep away from the MLM label with CDM, I don’t blame them one bit. But the tarnish on MLM’s reputation is not to be blamed on Amway or all of its distributors, just some of the bright eyed bushy tailed zealots who thought they were being smart, but weren’t.
Melaleuca has also been around and has experienced continual growth year-after-year for 25 years and is now up to $850M a year in sales with hundreds of thousands of customers in several countries. And unlike some other MLM’s that charge $200+ for a business kit and pimp motivational tapes by the dozen and critize you if you aren’t “CORE”, Melaleuca’s superior products still save you money over retail brands even if you are “just a customer”. And I find MelaPower to be a better detergent than Amway’s SA8 or anything I’ve ever purchased from Fred Meyer, Walmart or Safeway.