Is Melaleuca a Pyramid Scam or Legit MLM? – (REVIEW) – Free Affiliate Marketing Business

Welcome to my Melaleuca MLM review.

Melaleuca is known as a wellness multi-level marketing company that offers lucrative opportunities to earn by selling their items.

If you are interested in knowing:

Is Melaleuca a pyramid scheme
Is Melaleuca MLM a scam or legit
How it helps you to earn
The real cost to start
And more!

You’ve clicked on the right website!

I’ve dedicated a few days to analyzing this famous MLM, taking tons of notes, uncovering info, and thoroughly going over the program so that I can provide you with the most helpful Melaleuca MLM review.

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I Want To Know…

About the Reviewer

Hey, I’m Ivan Brozincevic!

Since 2018, I’ve been making a full-time income online, which allowed me to quit my old job (about me).

Initially, I struggled to identify legit courses and avoid ones that were just out for my money.

That’s why I created this website – my main goal is to help you steer clear of pitfalls and discover the top online business courses.

Every week, I invest hours reviewing online courses and writing reviews based on my fact-driven review guidelines to assist you in making an informed choice.

Is Melaleuca a Scam Company?

In my review, Melaleuca is not a scam. They sell legitimate products, and members of the Melaleuca program receive the payment as promised. Additionally, their products are safe and approved.

However, despite offering organic and high-quality products, Melaleuca MLM falls short in terms of commissions, making it a less favourable business opportunity.

The role of a Product Advocate entails recruiting numerous personnel and hundreds of active customers for a decent part-time to full-time income. However, achieving this goal necessitates reaching out to a broader audience beyond one’s inner circle of family and friends.

It is important to note that while the opportunity to earn money with Melaleuca is not a scam, it may not be suitable for everyone. In fact, in my review, I do not highly recommend Melaleuca.

One of the primary reasons I am against MLMs is that the majority of people who join such schemes fail to generate significant income. According to Melaleuca’s income report for 2021, only around 9% of individuals have referred at least one customer, and even fewer have referred more than 8.

These numbers fall far short of what is required to earn a full-time income.

Becoming a successful Melaleuca representative demands dedicating considerable time and effort, often requiring one to abandon other pursuits and work tirelessly day and night.

There are far better ways to invest your time and money… See the rest of my Melaleuca MLM review to gain more insights before making decisions.

What Is Melaleuca?

One of the most frequently asked questions online is whether Melaleuca is a pyramid scheme. In this review, I’ll primarily focus on addressing that question. However, before diving into the details, let’s first provide a general overview of the company.

Melaleuca, established in 1985, operates within the health industry, with a specialization in marketing “green” and “all-natural” household health products.

Melaleuca, an interesting company named after the Melaleuca plant, praises the plant’s qualities as the secret behind its terrific products. Although I haven’t personally tried them, perhaps they are as exceptional as claimed.

Primarily, the company focuses on marketing vitamins, supplements, beauty care, detergents, and cleaning products. While other items are available, these are the main offerings.

What sets Melaleuca apart is its claim of products free of chlorine, formaldehyde, coated pills, and other non-green ingredients.

Melaleuca’s appeal and potential profitability lie in its embrace of the environmentally friendly movement—a psychological draw that has gained significant traction. In that sense, Melaleuca was ahead of its time.

However, the question remains: is Melaleuca a pyramid scheme that takes advantage of individuals like you? Should you consider joining the business? This review aims to uncover the truth.

Is Melaleuca an MLM (direct sale)?

For many years, Melaleuca, a billion-dollar wellness company, has wrestled with this question: Is Melaleuca an MLM? In this post, I’ll delve into my expertise in the MLM industry and present my Melaleuca Review.

But first, let’s clarify the distinction between an illegal scheme and a legal MLM…

Reading what Melaleuca and even direct selling regulators say can be quite confusing. They try to convince us that the company isn’t a direct selling or MLM company.

But in my opinion, it is. And being an MLM company isn’t necessarily a bad thing; in fact, it can be great! Why? Because you have the potential to make good money by being a part of their program.

Melaleuca has been in business for over 30 years, and like most legitimate MLMs, they have stood the test of time. There’s no income ceiling when it comes to selling their products.

Now, I understand why some people might say that Melaleuca is a pyramid scheme or a scam…

I’m not a fan of the MLM business model because it’s difficult for most people to succeed. It requires strong recruiting and sales skills, which not everyone possesses. As a result, many people fail and label companies like Melaleuca as scams.

However, this still doesn’t answer your question about whether Melaleuca is a scam or legitimate. There’s a lot to investigate before making a judgment, so keep reading…

Is Melaleuca a Pyramid Scheme?

I have previously stated that Melaleuca is not a scam. However, some may wonder if it operates as a pyramid scheme. Rest assured, Melaleuca is a legitimate business that does not engage in any illegal activities.

They offer genuine products, and their “executives” receive payment through product sales.

What Is Pyramid Scheme?

A Pyramid Scheme is a type of business that compensates individuals for recruiting new members, rather than for selling a product or service. The process begins with initial promoters who recruit investors, who then go on to recruit additional investors, thereby growing the network.

The name “pyramid” aptly represents this structure, as the number of investors increases at each level.

As a Melaleuca product advocate, your role involves selling a couple of products to people you know. However, as a business builder, you take a more serious approach to selling these products.

Is Melaleuca a Pyramid Scheme In Disguise?

There has been an ongoing debate about whether Melaleuca is a disguised pyramid scheme. The company operates using a multilevel advertising and marketing model, which some people find suspicious.

However, it should be noted that many legitimate businesses employ this type of marketing strategy, and it is not illegal.

One significant concern with Melaleuca is that it requires its consultants to purchase a starter package to join, and these kits can be quite expensive.

Moreover, the business heavily relies on recruitment to expand, which may pressure consultants to consistently sign up new members.

Ultimately, the question of whether Melaleuca is a pyramid scheme remains a subject of argument. Nevertheless, it is crucial to be aware of the potential risks associated with joining such a company.

Like any other business I review, there are disadvantages to Melaleuca MLM that I will disclose in my upcoming review. However, it is important to note that having drawbacks does not automatically classify it as a scam.

Related: 7K Metals Review

Who Owns the Melaleuca Company?

Melaleuca is a US-based company founded and led by Frank VanderSloot. The 68-year-old VanderSloot is not only Idaho’s wealthiest person but also the CEO of Melaleuca, with an estimated net worth of $1.9 billion.

Melaleuca, The Wellness Company, under VanderSloot’s leadership, has consistently ranked on Inc. magazine’s list of the nation’s 500 fastest-growing, privately-held companies.

Founded in 1985 and headquartered in Idaho Falls, Idaho, USA, Melaleuca is now a $780 million company that specializes in nutritional, cosmetic, and personal care products.

Considering all this information, it is safe to say that Melaleuca is not a scam. However, let’s explore the rest of this review before making a final judgment…

Related Review: Is Cutco a Scam or Legit?

How Does Melaleuca Work?

Melaleuca operates as both a health and wellness e-tailer and a referral-based business. Participants, who are non-employees, join the company to purchase its products online and have them delivered to their homes or businesses.

To complete the signup process, you will need to connect with an existing participant and sign up under them. This existing member, now referred to as an Item Supporter, earns a commission each time their new team member makes a purchase.

The standard commission is 7%, which can accumulate quickly if you recruit multiple members.

Before you can start recruiting, however, you will need to make some product purchases yourself. As a Melaleuca MLM member, you need to buy a certain number of product points each month to maintain active status and receive compensation.

Currently, the required point level is 50, which amounts to around $80 for the product.

Therefore, every month you wish to continue with Melaleuca MLM, you must place an order worth approximately $80.

Interestingly, Melaleuca never uses the term MLM to describe its recruitment focus.

Instead, it always refers to itself as a “referral-based company” – a claim that has already been debunked. If a company provides incentives for its members to recruit others and pays them commissions for doing so, then it embodies the principles of network and multi-level advertising.

If this information feels overwhelming, you can also check out the Melaleuca review below for more details.

How Do I Become a Melaleuca Representative?

As a new client, you have two options to register with Melaleuca MLM. You can either register through their sponsor or contact Melaleuca MLM client support directly.

You can choose between a ‘Customer Membership Arrangement’ (Direct client) for $25 or an ‘Advertising Exec Agreement’ (Liked customer) for $29. The second option is suitable for those seeking an economic opportunity.

Melaleuca MLM follows a 5 × 7 compensation plan. This means you need to build a group of five members, and each of those members needs to build their leg of five members each.

Unlike other MLM companies, Melaleuca MLM ensures its representatives (you) receive a consistent 7% commission on every purchase made by down-line members, up to the 7th level.

To be eligible for the commission, you need to stay active by purchasing 50 product points every month.

Related Review: Is Vector Marketing a Scam?

Is Melaleuca Available Outside the US?

If Melaleuca were a scam, it would have been closed by the FTC and other government bodies a long time ago. However, it is not a scam. Hence, Melaleuca is available in over 15 countries worldwide.

That said, Melaleuca company does business in:

the United States
Canada
Mexico
Puerto Rico
The United Kingdom
Ireland
Netherlands
Germany
Austria
Poland
China
Singapore
Malaysia
Japan
South Korea
Hong Kong
Taiwan
Australia
New Zealand

Melaleuca operates in 19 countries across the globe.

Although its primary business focuses on the United States and Canada, international sales contribute 45 percent of its revenues.

In the upcoming sections of my Melaleuca review, I will explain how you can earn money and the potential income you can achieve through this MLM.

How Can You Make Money With Melaleuca?

In my review mentioned earlier, the commission earned with Melaleuca MLM is determined by the product points acquired by your downline.

Each Melaleuca item is assigned a point value. Whenever customers you refer purchase products, you earn a commission based on the point value of their purchase.

To receive the necessary commission, you must also purchase at least 50 points worth of product each month. So, while seeking a business opportunity, you are also a mandatory consumer.

Some individuals may claim that Melaleuca MLM is a scam for this reason… But it’s not, really…

The product points ensure that you receive the same commission regardless of the customer’s payment. For instance, even customers signing up for a monthly supply of Melaleuca will qualify for the ‘preferred member rate’.

Despite receiving a discount, your compensation remains unchanged.

The compensation amount is calculated based on a combination of the purchased product quantity and the number of customers personally enrolled by you.

But how much exactly can you earn? Continue reading my Melaleuca review…

How Much Commission Can You Make With Melaleuca?

According to the stats, Melaleuca MLM representatives who reached the status of Senior Director and above earned an average yearly income of $67,600.

The highest revenue earned that year was $278,200. However, at the start of 2021, 99.58% of ‘clients’ gained less than $32,000 in payment from Melaleuca. In other words, only 0.42% or 1 in 238 earned a full-time income.

So, does this mean that Melaleuca is a scam? Not really. Like all MLMs, Melaleuca provides excuses to describe these results. They claim that “the majority that signs up are just curious about being customers” and that “extremely few decide to construct a company”.

While these declarations could be true, they might also be an effort to spin the facts and make Melaleuca sound too good to be true. Giving Melaleuca MLM the benefit of the doubt, let’s presume that 66% of active members in 2016 only signed up to be clients.

With this change, we can see that of those who joined Melaleuca with the intention of more than just being consumers, only 1.23% made a full-time income. That’s not encouraging…

How Much Does Melaleuca Cost Per Month?

Melaleuca’s MLM membership costs $19 plus tax per year. However, there’s more to the membership fee than just the $19. You must accumulate a minimum of 50 product points each month to remain in the program.

Some members claim that the products only cost $50, but a more accurate estimate is around $60, amounting to $720 for the products alone. Thus, at $739 per year, the total cost goes well beyond the initial $19.

This discrepancy in transparency raises concerns about Melaleuca’s honesty and trustworthiness. However, labelling Melaleuca as a scam solely based on this would be premature.

Related Review: Is Kangen Water a Scam?

How To Get Out Of Melaleuca?

Some people may believe that Melaleuca is a scam. If you are one of them, here are the steps you can take to cancel your membership and part ways with the company:

Call Melaleuca’s customer support and provide your member identification number. Explain the reason for cancelling your membership.

If calling doesn’t work, you have an alternative option:

Visit Melaleuca’s online site.
Navigate to the cancellation form.
Fill out the form with the necessary details.

The cancellation form will include the following information:

[Include the details of the cancellation form here]

By following these steps, you can cancel your membership with Melaleuca.

Please provide the following information:
Your complete name and your sponsor’s name.
The address to which your products will be delivered.
Your contact number.
The business kit number.
A personal message detailing your reasons for wanting to cancel your account. If your membership is less than 120 days old, you can also request a refund of your enrollment fee.

What Are Melaleuca Products?

In my earlier Melaleuca review, I mentioned that the company offers a variety of natural, eco-friendly cleaning, skincare, and health products. They have an extensive range of items, including:

shower cleaner
toothpaste
furniture polish
laundry stain remover
tea tree oil
shampoo
lip balm
vitamins
fibre
tub & tile cleaner
…many more!

You can purchase Melaleuca products on Amazon (not an affiliate link) from their Amazon store.

Unfortunately, I won’t be able to show you any of these products because Melaleuca has repeatedly attempted to take down this page due to copyright claims. Despite their claim of having over 400 products on their website, you won’t find any information about them there.

Are Melaleuca Products Legit?

Melaleuca products are considered legitimate. The company has a consumer rating of 4.54 stars based on 343 reviews, indicating that most customers are satisfied with their purchases.

Customers often mention customer service, cleaning products, and peak performance as reasons for their satisfaction. Melaleuca ranks 6th among Alternative Medicine sites.

Below is a review from one of the many happy customers…

Is Melaleuca Natural?

ConsumerGoods.com states that Melaleuca products are legitimate and safe.

The owner emphasizes that many companies engage in “greenwashing” or “green screening” to cater to the demand for environmentally responsible products, rather than addressing the underlying issues.

In contrast, Melaleuca chooses to use natural, sustainable ingredients in its products, even if it is not the most profitable option for the company.

Is Melaleuca FDA Approved?

Melaleuca manufactures the vast majority of its products at multiple facilities in Idaho Falls, ID, and Knoxville, TN. In addition, Melaleuca has manufacturing facilities in China specifically for products sold in Asia.

Moreover, as an FDA-approved manufacturer of over-the-counter pharmaceuticals, Melaleuca ensures the safety of its products.

I don’t recommend Melaleuca MLM if you are looking for a serious money-making opportunity. I don’t see it as a great opportunity compared to other business models (check out my #1 recommendation).

However, if you decide to give it a try, remember this…

Companies are like human beings, they always have their flaws. So, it’s important to understand these weaknesses to determine if you can work around them or simply avoid this business altogether.

I often see people getting defensive when anything negative is said about their beloved business. However, I believe it’s worse to present a business as perfect, only for you to later discover the truth after joining.

This leads to unhappy customers and representatives because you weren’t completely honest with them about the pros and cons of the business.

So, as you go through the disadvantages I’ve identified, keep in mind that it’s not an indictment. These are just things people have complained about, for better or for worse.

Melaleuca Reviews From Customers

To determine if Melaleuca is a scam, it’s beneficial to read reviews from other people.

On Trustpilot, there are 510 reviews, and the company has earned a respectable 3.4 stars.

This rating is higher than many other comparable MLMs, which typically range from 0.5 to 2.5 stars. Additionally, on SiteJabber.com, they have an impressive 4.5 rating based on 356 reviews.

Let’s begin by exploring some positive reviews of Melaleuca MLM.

Below, you’ll find a list of the most commonly encountered positive and negative feedback.

“This company has changed my life – 23 years ago my daughter had asthma and it forced me to learn about going GREEN and Healthy Solutions…I have never looked back. Best decision for my family’s health.”
“They make it so easy to switch where you are buying your everyday products over to Safer, More Effective, and Even More Affordable! Real Wellness is delivered right to my door! I love how non-toxic doesn’t have to cost an arm & a leg with them! I am totally addicted because the products work so well.”

There are also a few negative reviews…

“I enjoy most of their products but don’t go to them if you ever have a problem, they have terrible customer service.”
“They trap you into buying a set amount each month (used to be £75 monthly but likely much higher now). If you don’t order, they send you a bundle of products to the value of the set amount regardless. They also try to get you to get your friends and family to join on the pretext of creating your own business.”

Most online reviews for Melaleuca are positive, which supports my claim that it is a legitimate health and wellness/MLM company, not a scam or pyramid scheme.

Related: Crowd1 Review

Melaleuca Review Pros

Melaleuca stands out for a few reasons:

Good and wide range of products: Melaleuca is recognized as one of the largest multi-level marketing brands globally with a vast selection.
Longevity of the business: Since 1985, Melaleuca has maintained its presence in the market, distinguishing it as one of the MLM businesses that has remained true to its name.
Positive product reviews: The products offered by Melaleuca have garnered hundreds of positive reviews, which is a testament to their quality and impressive reputation.

Melaleuca Review Cons

While there are a few aspects of this brand that I don’t particularly like, it’s important to note that this doesn’t imply that Melaleuca is a scam. Let me go into detail about what I find concerning:

Hidden fees: The brand advertises a membership cost of $19 plus tax per year, but the reality is that you’ll have to pay $739 to remain in the program.
Expensive products: The requirement to purchase and resell products at a higher monthly price raises doubts about the model. By comparing the costs of similar products in other retail stores, you’ll understand the issue.
Lack of sustainable income potential: Achieving significant earnings with Melaleuca relies heavily on luck. Making six figures a year, especially through recruiting “executives,” is far from easy.
Low average earnings: Melaleuca discloses the earnings of its Product Advocates and their progression through the ranks. Sadly, as shown in the table provided, the earnings are not substantial.

It’s essential to carefully consider these points before becoming involved with Melaleuca.

My Melaleuca Review – Conclusion

Melaleuca does offer some premium quality products that people seem to appreciate. However, as a business opportunity, it is unlikely to help you quit your full-time job anytime soon.

That being said, making suitable money with MLMs in general can be an uphill struggle. The only way to earn significant income from Melaleuca is by recruiting many individuals into the business and hoping they can replicate your success.

But it’s important to note that achieving success will require facing numerous rejections and developing a thick skin. Therefore, I do not believe this is the optimal way to make money online.

Thanks for reading my Melaleuca review! Do you have any comments or questions? Feel free to leave them at the end of this post.

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If you want to learn more about how to start making money online with affiliate marketing, I strongly suggest you sign up for the free training on the next page.

And don’t forget to share this Melaleuca MLM review with your friends and family!

All the best, Ivan @freeaffiliatemarketingbusiness.com

Melaleuca MLM FAQs

What is Melaleuca MLM?

Melaleuca MLM is a direct-selling company. They offer a wide range of wellness, home cleaning, personal care, and nutritional products. These products are available through a network of independent representatives.

Is Melaleuca MLM a pyramid scheme?

No, Melaleuca MLM is a legitimate direct-selling company that operates within legal boundaries. It primarily earns revenue from product sales rather than recruitment.

How do I become a Melaleuca MLM representative?

To become a Melaleuca MLM representative, you need to follow two steps. First, sign up under an existing representative. Second, purchase a Business Starter Kit. By doing so, you gain access to Melaleuca products at discounted prices, which can be sold to your customers.

Do I need to purchase inventory as a Melaleuca MLM representative?

No, representatives of Melaleuca MLM are not required to purchase inventory. Instead, you can directly guide your customers to the company’s website or provide them with product catalogues for placing orders.

Can I make money with Melaleuca MLM?

Yes, with Melaleuca MLM, you have the potential to earn money through product sales and commissions. However, the level of success and income can differ substantially based on factors including sales ability, effort, and the size of your customer base.

Are Melaleuca products high quality?

Melaleuca prides itself on providing high-quality products. They claim to use natural ingredients and conduct extensive research and testing to ensure that their products meet strict standards.

What are the benefits of becoming a Melaleuca MLM representative?

As a Melaleuca MLM representative, you can benefit from discounted prices on products for personal use. Additionally, you have the opportunity to earn commissions on sales, potential bonuses and incentives, all while enjoying the flexibility to work on your schedule.

Are there any monthly sales quotas or requirements?

Melaleuca MLM does not impose monthly sales quotas or requirements. However, to be an active representative and earn commissions, you must generate a minimum of 35 Product Points each month.

Can I sell Melaleuca products online?

Yes, Melaleuca products can be sold online through personalized websites provided by the company. Customers can conveniently place orders directly on these websites. Additionally, promoting products through various online channels, including social media, is also an effective strategy.

What is the return policy for Melaleuca products?

At Melaleuca, we stand by our products with a 100% satisfaction guarantee. If you are not completely satisfied, you can request a full refund or exchange within 90 days of purchase.

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