Melaleuca MLM Review: Pyramid Scheme or Scam?

Melaleuca MLM Review: Pyramid Scheme or Scam?

Today we will be reviewing a company called Melaleuca. Is Melaleuca a pyramid scheme or scam? Find out in this Melaleuca MLM review.

Like me, you probably haven’t heard of Melaleuca before, until someone mentioned it to you.

It could be a family member who thinks that “he’s running his own business”, some girl from high school whom you never talked to but refers to herself as “#bossbabe”, or a friend you never talked to anymore after they started recruiting you to a pyramid scheme.

It is very likely that you have encountered any or all of those scenarios above, which is quite a sad reality.

Looks like MLMs have stepped up their game with the rise of social media marketing.

Anyway, if Melaleuca has perked up your interest, then I could help you there.

With this in-depth review, I will be able to show you some facts about Melaleuca, things they hide from you, and why I do not recommend Melaleuca or any other MLM at all.

As a disclaimer, I am not currently affiliated with Melaleuca, and I never will be.

Before that, let me tell you first the difference between an MLM and a pyramid scheme. MLMs have products to sell, while pyramid schemes focus solely on recruiting.

In this Melaleuca MLM review, I will be providing information about the company, its products, and how you can make money with it.

Hopefully this Melaleuca MLM review can help you decide whether you want to sign up for the company or not.

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What is Melaleuca?

Melaleuca is a multi-level marketing company that sells health and wellness products.

The company was founded in 1985 by Frank L. Vandersloot.

As you can see, the company has been operating for 35 years and counting.

It also seems like Melaleuca generates quite a lot of revenue with every passing year.

Melaleuca MLM Review - Melaleuca products

To know more about Melaleuca and the opportunity they present, then you can watch this video.

The company is currently based in Idaho, United States.

How Do MLMs Work?

MLMs like Melaleuca often present themselves as “great opportunities”, and that joining the company will pay you a “full-time income for part-time work”.

If this is your first time hearing that statement, you will surely get interested to learn more.

The problem with this mentality is that there is no way that these MLMs can do that.

We all know that if an offer sounds too good to be true, then it is most likely that it isn’t.

The problem with these MLMs is they know what to say in order to appeal to the gullible.

If you are a single or stay-at-home parent, you would have thought time and time again about ways you can earn extra income while continuing to tend to your children.

MLMs target those people as they know that they are the ones looking for side hustles that require little time.

This is why MLMs often oversell their products.

They make you think that you haven’t seen anything like this before, and that this is not available elsewhere. That is how their appeal works.

You, the gullible person who just wants some extra money, sees it as a once-in-a-lifetime opportunity, and go deep into it.

Remember that no proper job makes you pay upfront before starting.

This is what MLMs do. They make you buy something first before letting you join.

To know more about MLMs, I suggest doing thorough research. You will definitely be surprised by how much they hide from you.

Is Melaleuca a Pyramid Scheme?

Since Melaleuca members earn money both by selling services and recruiting new members, then it is safe to say that Melaleuca is not a pyramid scheme.

However, note that recruiting is more emphasized here than selling.

You can actually earn more from recruiting members than selling products.

Let me warn you now that recruiting people is not as easy as it looks.

Not everyone is willing to be a part of an MLM.

Pyramid scheme vs Multi-level marketing

Like Jeunesse, Neora, and Aloette, Melaleuca is not a pyramid scheme.

Is Melaleuca a Scam?

No, Melaleuca is not a scam. However, they are not really as good as they say they are.

You can watch this video to find out more about them and what they may be hiding from you.

Before joining an MLM, I suggest you watch videos like this first to gain an insight.

Most people who make this videos are ex-members of MLMs, and their testimonies have great value.

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How to Make Money from Melaleuca

As usual, this is an MLM, so there are only to ways to make money:

  1. Selling products
  2. Recruiting people

Prepare to recruit as many people as you can get because that is the main emphasis here.

How Does Melaleuca Work?

This process is pretty straightforward.

Melaleuca makes the products, you market and sell them, then Melaleuca pays you a commission for every product you sell.

However, take note that you will get a measly percentage even from all the effort you do to be able to make their products appealing to the public.

Melaleuca does not spend much on advertising because their members do it for them.

Sadly, they only pay you for how many products you sell, without taking note of the other things you have to do to sell them.

Melaleuca Products

Melaleuca MLM Review - Melaleuca products 2

Melaleuca sells the following products:

  • vitamins and supplements
  • food and weight management supplements
  • medicines
  • skin care products
  • cosmetics
  • hair care products
  • fragrance
  • cleaning and laundry products
  • home fragrances
  • bath and body products
  • skin care products
  • essential oils

Their product line is quite vast so I suggest looking at their website for the whole catalog.

Things I Like in Melaleuca

Established Company

Melaleuca has been around since 1985, which is quite impressive.

Most MLMs die in a period of 1 to 3 years, and for a company that has lasted for 35 years and counting, they must be doing something right.

I guess this fact could give you some confidence to join Melaleuca.

However, do not make this your only basis of joining them.

Positive Product Reviews

The reason why Melaleuca still exists is because people actually like their products. Here are some reviews I have found.

Melaleuca review 1 Melaleuca review 2 Melaleuca review 3

Things I Dislike in Melaleuca

Overpriced Products

If you think that Melaleuca is good because they have been here for a long time, then think again.

People are not that dumb to pay a lot more for an “exclusive” product just for the sake of it.

We all stick to our budgets as much as we need to.

Most people look at prices first before deciding whether they want to purchase something or not.

With Melaleuca, well, they think you are dumb enough to buy something that they brand as “unique” even though there are a lot of alternatives out there who sell them cheaper.

Issues with Cancellation

I cannot count how many complaints I saw about this, but here are some of them.

Melaleuca cancellation 1 Melaleuca cancellation 2 Melaleuca cancellation 3

It looks like Melaleuca employs an auto-ship feature for their members, but make it deliberately hard for people to cancel their accounts.

I only got three out of many complaints. And by many, I mean like a lot.

Now that is pretty scummy.

Buy, Buy, Buy

Another scummy tactic from Melaleuca is that they are forcing you to buy products every month to maintain your active status.

I am pretty sure that this feature is highly unnecessary because you really should not be buying many products without knowing if you can actually sell them.

Also, even if they try to justify this by saying that you can use the products yourself, it still would not make sense? Exactly how many products can you consume in a single month?

Imagine living alone and trying to make money from Melaleuca.

You will be forced to buy all these products and use them if you cannot sell them.

You will probably end up with a year’s worth of product. Just saying.

Little to No Income Potential

You can view Melaleuca’s income disclosure statement here.

As you can see, it seems like only 11% of those who signed up for the company made any money.

This is not surprising, consider the other factors I already stated above.

To add insult to injury, it seems like the average annual income to those who actually made money are a mere $2,209.

Imagine being paid only that amount for all the things you have to do, from ordering, packing, shipping, transportation, and hosting parties just so people would know what Melaleuca is all about.

Does this opportunity still seem worthy of your time?

Lots of Competition

You are probably aware that there are a lot of more well-known companies and brands selling the same stuff that Melaleuca advertises as “exclusive”.

If you sign up for Melaleuca, how do you think can you stand out and even compete about those brands?

Remember that people will still buy the brands they trust even though they are presented with something new.

Also, with Melaleuca’s ridiculous prices, do not expect customers to come running to your door.

As a customer myself, why would I choose to buy from you when it is much more simple for me to just get my supplies from a supermarket?

Think about that.

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Melaleuca Compensation Plan

You can access Melaleuca’s compensation plan here.

  1. Commissions – for your referrals
  2. Advancement bonus – for ranking up
  3. Pacesetter bonus – for ranking up in a fix time frame
  4. Mentoring bonus – when your downline climbs the ranks
  5. Core mentoring bonus – when your downline climbs the ranks
  6. Double core mentoring bonus – when your downline climbs the ranks
  7. Leadership growth bonus – bonuses once you climb the ranks
  8. Monthly car bonus – only for those in certain ranks
  9. 20/20 bonus – if you manage to recruit 20 members in 5 months

You can also learn more about the compensation plan by watching this video.

10 Shocking MLM Statistics That You Need To Know!

MLM stats

  • Almost 99% participants of all multi-level marketing companies lose money, according to the FTC.
  • There are 38% more chances of you profiting from your own any kind of small business than joining these MLMs.
  • Success rate of an online business, which will give you financial and time freedom, is 20% more than joining MLMs for making money.
  • The odds of you winning a lottery worth $10k among 10,000 people is 300 times higher than actually making money from MLMs.
  • According to the AARP foundation, 47% distributors of all MLMs lose their money. Apart from this, 27% do not make a single penny.
  • In the remaining 26% that actually make money, 53% of them make less than $5000/year.
  • 39% of those 53%, who are making $5000/year quit because recruiting and selling crappy products to friends and family members jeopardized their relationships.
  • Forget about building a long term business with MLMs, because 50% of all MLMs participants quit within one year.
  • 75% people that joined MLMs say that they will never again join any kind of MLM.
  • A poll was conducted in 2018 among 1050 MLM distributors and it was concluded that most of them made 70 cents an hour and 20% of them did not make a sale. 60% of them made less than $500 in sales over the past 5 years and 32% of them acquired credit card debt to finance their MLM involvements.

SOURCES:

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Final Verdict – Melaleuca

Before I end this review, I would like to share a few thought that could help you.

You do not need to join an MLM just to make money on the side.

There are many opportunities out there that will pay you the right amount for all your efforts and will not cause you as much stress as this company will give you.

Also, remember that no one even knows that this company exists.

Even if you pitch Melaleuca repeatedly to your customers, they will still choose more well-known and more reputable brands.

With the rise of online shopping, people are now presented with more choices.

And people choose not to shop from MLMs because of their bad reputation.

If you are planning to quit your full-time job to pursue this opportunity full-time, then you are making a big mistake.

That’s it for my Melaleuca MLM review. Hopefully this Melaleuca MLM review helps with your decision.

I do not recommend MLMs,but if you want to make money online, you should check out my #1 recommendation to making money online after reviewing 300+ MLM companies.

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