Complaint Review: Melaleuca - Idaho Fall Idaho

You Cannot use a prepaid card with Melaleuca so this complaint is in error!

Proctor & Gamble $82.6 Billion sales (2011), Unilever Bros $61.6 Billion sales (2011), Johnson & Johnson $61.5 Billion sales (2011), Colgate Palmolive $15.5 Billion sales (2011) we shall refer to these companies as the 4 multi-nationals. These 4 multi-nationals manufactured $220 Billion dollars in the U.S. alone in 2011 and they put their products in the grocery stores, with Wal-Mart being the largest BOX retailer in the world and also your local grocery stores in that you shop from at in your local community.  So, in order for the manufacturer to get their products in the grocery stores for consumers to shop and buy for their necessity needs there is a percentage mark-up to pay for TV advertising (TV advertising is not cheap) and of course they have to pay for the semi truck drivers to haul those consumables to the grocery stores for distribution, and of couse the grocery stores have stock boys (they have to pay the workers) who stock the shelves in the grocery stores so that when we shop and take the product of our choice off the grocery store shelve, and of course the grocery store chains have to pay rent on the big giant box that we go shop from (pay rent on the big box store places is not cheap), and finally the grocery store outlets need to also make a profit. So that is what we call "middle men expenditures.
So, let me all ask you what percentage of the products are marked up from the manufacturer till it reaches the grocery store shelf to pay for all of that middle men expenditures? 63% 63% 63% 63%. I hope this is all making sense to you who want to critisize Melaleuca. So since Melaleuca doesn't pay for any of those middle men expenditures, and there is a documented 95% consumer re-order rate month to month, then what does Melaleuca do with that middle men profit margin since they are not paying for advertising, long haul truck drivers, stock boys, giant grocery store box rents each month. They pass the middle men markup to the shoppers who refer other shoppers to shop directly from Melaleuca for the same products that are in the grocery stores.
Melaleuca pays 51% back to the shoppers who refer other shoppers to shop. This business model was also done when netflix and redbox changed the game with blockbuster video, and blockbuster video was a $6 BILLION dollar business in 2004 and now it's bankrupt and Netflix did $3.3 BILLION in video rental sales in 2011 and Redbox did $1.5 BILLION in video rentals in 2011 as well. Do you know who the first BIG BOX outlet that was the first company to go out of business because of this "game changing" business model that is going to revolutionize how business is going to be done? CIRCUT CITY was the first BIG BOX to file bankruptcy. This is going to be the new way of doing businss and for all those who critisize Melaleuca, I would pay attention to what's happening in the business community and the world of business at large.

Now, one last final concept. Costco is a whole saler who has 44 million members in the US alone and each member shops in their BIG BOX grocery outlets for a minimum of $100/month and that adds up to $4.4 BILLION dollars going through Costco's bank account each month and Costco has no intention of sharing their profits with the consumer who shops at their BIG BOX stores now do they?

Now, since Melaleuca shop direct from the manufacturer (melaleuca is the manufacturer NOT the re-seller), each member who shops from Melaleuca pays the same price for the consumables as the next guy, so I would hardly call this businss model Melaleuca has an MLM. There certainly are no multiple levels of distribution since the consumer is shopper direct from the manufacturer.

Lastly, this is going to be the shopping of the future, and if I were the CEO of one of the 4 multi-national manufacturers I would be very worried about the future of my company and how they're going to get their products in the hands of the consumers, since I don't think they could create a business model Melaleuca has because I don't think the products manufactured by the 4 multi-nationals are exciting enough to have this kind of  business model, do you? And they have no way of compensating the shopper who already shops for their products.

So, now that you all have seen Melaleuca through my eyes, it is a Business, a real business and for all those critics out there, i'd be worried if I were you. Melaleuca is going to change the game in an industry and shopping concept that hasn't changed for the last 100 years. And coincidently, I am going to get rich and build lasting residual income to last me a lifetime. Now, I can't get excited about the consumables as an industry as a whole, but what I can get excited about is these products are in your household and everyone elses household, they are the consumables with repeat monthly business. I am laughing all the way to the bank as I am writing this, LOL

Hey.  I was with Melaleuca for 2 years.  I used thier products  (almost all of them suck)  They may or may not even be envoronmentally friendly,  but they certainly do not clean as well as store bought products,  or even other environmentally ssafe products that I have used from health food store.

Anyhow,  I have never had a problem returning products that I didn't like,  or even problems cancelling my membership.

What you need to do though is:  write a letter to the company and include all of your information such as your:  name,  address,  telephone number and customer I.D.  (you can mail or fax it in)

Your account will be cancelled as soon as thier  *RECIEVE*  it.  You can also send back the items,  and they will reimburse you with a cheque  (minus shipping and handling)

Good Luck

You are saying that you have NO referrals?  In other words, there is nobody who, when they buy, cause you to get any residuals? If not, are you eligible to add people as referrals (I think there is some kind of "preferred customer" category or something or other you need to be; I believe it involves auto-refill or something).

 How long have you been using the products?  

I'm not exactly an employee... just a customer who has also recommended some of my friends... ;-)

I was so skeptical it took 4 years before I finally tried some of the products.  Just as many of you think,
I was convinced it was not what my friend was saying.  Then I found out they were even better!   Isn't it funny that sometimes unless we see it advertised on  TV by paid actors who in many instances have never ever even used the product they are promoting but will not believe someone who has actually used the product."?  It blows my mind when pharmaceuticals are advertised and then the "precautions" go on for longer than the actual advertisement.. including "some have died"..admonishments and then they go to doctor to have him prescribe it.!   Another advertisement that drives me crazy is spraying Lysol or Purex all over the baby's room!  Have you read the precautions on them? 

But getting back to your comments, why would someone who is not even interested in the business keep ordering products from Melaleuca for YEARS if they didn't work or were too costly?  

lol, for some reason MLMs say this ALL the time. I think it is because some people get wise after trying a few other MLMs, and need to be convinced the next one is "special". 

The sad thing is, just about all the people plugging Malecula on here feel the need to do so because they need to keep themselves convinced. It can be hard for one to admit they have made a bad decision, but it is the only way to mitigate the effects of that decision. 

http://www.mlmwatch.org/

Yes, our products really are not only better, but also safe and more economical!

Please, dont confuse our company with others.  We really are different. 

I have been with Melaleuca over 15 years.  I didnt join to start a business.  I joined because a friend of mine gave me some products to try for my eczema.  After trying several OTC products, my hands were so swollen and bleeding and itching that I couldnt even drive and my daughter had to take me to the doctor where he gave me a prescription
medication.  It was in a tube smaller than my little finger that cost over $100 and didnt make any difference at all.  I was desperate and willing to try anything. Imagine my surprise when I could feel the difference within hours of trying the products.  My eczema was completely gone in a few weeks.  She then told me about some of the other products and showed me how some of them worked and at that time I decided I wanted to try more of them.  I have never been disappointed.  In fact, I had to tell others about these wonderful products and yes, began to build a business. I was so excited to be able to help my mom and dad, friends with different problems.  More exciting was when they called to tell me how much they loved the products too!  Many of the products are more economical than Walmart are safer to use, and are some of the best products I have ever used.  I will never be without them!

Long story short, unlike MLM where you have to be at top, your income is determined by how much time and effort you put into it.  Imagine that getting paid for the effort you put into it.  It doesnt matter where you are in the organization either. In fact, I have many customers in my organization who have worked hard and have become very successful and are making thousands of dollars more than I. It makes no difference where they are in my organization.

Because our products are so good, unlike other businesses, we have over a 95% reorder rate.   I have customers that have been with me since the beginningover 12 years some are business builders, but the majority are just customers that order what they need every month  because they love our products and just cant imagine being without them and I dont have to call, take orders or deliver to them.  The products really are superior! 

Thats what makes Melaleuca different! 

I could go on and on about our products and business but I suggest you call Tony and let him give you an overview. Its easy to be confused and to think were like others because there is no other business that does it like we do.  If he is truly a Melaleuca representative, he will not pressure you at all or do anything like the person mentioned above.  ( I suspect that person has long been terminated.  That is not how we are taught to do business.) Also, I do not know Tony or have any connection with him but can see he is representative of what we all should be.

MLM may work if you are already up and high in the tier/ladder. The more the people are exposed to and reject it, the less chance one would be able to climb up to where others who have already been up there are. Those (and only a handful of them that keep showing up in their advertising) who are already up there are secured; whereas, those who are trying to start their dream keep screwing others who have not yet been heard about the MLM. If it is compared to an employment rate, the turnover rate is extremely high. Only a handful from each group could actually get up the ladder just in hope that their lower tier does not collapse.

I understand the concept of MLM and it would be OK as long as the system does not run out of resources -- people. I was in a couple of them before and saw exactly the same business logic. One important thing that a person needs to have in order to stay in the system is the confidence in their products. No, it is not for selling those products to others, but for convincing others to use their products. If one believes and likes the product, then others may feel the same. However, the majority of those who become members are bought into the dream that one day they would be successful as those (only a handful) who are in the top tier. Then they found out that this is not exactly true. Some of those may not like their products. These people then would not want to be a part of any MLM.

My first question would be that is their product really better than others in public market? It is not easy to compare. Normally, each MLM will have their own comparison data and the result is always that their products are better. The result is usually either announced in their special event/seminar or published in their magazine.

My second question would be when does they run out of those who are at the bottom tier? Maybe some days, but those who are at the top tier would have already made a lot of money by people at the bottom tier expenses. If the most bottom tier collapses, the whole system will collapse very soon after.

PS: Even though MLM is not the same as pyramid scheme [http://en.wikipedia.org/wiki/Pyramid_scheme], it inherits the basic idea of the scheme - tier with more members at the lower tier. MLM takes the legitimate part of it and makes it work; however, it ignores the truth about limitation of resources -- people...

Obviously, you have been hurt with some opportunity before and I am sorry for that. I am not saying that Melaleuca is for everybody but for those who are willing to work and I mean work from home, this might be the answer. I have met people in Melaleuca who are loyal to their products and have never done the business side of it before. People that have been there for 7, 12, 17 years and at first it was a puzzlement to me. But after hearing how the products have changed lives, I came to the conclusion that the real merit to Melaleuca is really the value of their products.

The opportunity is always there for people if they want it, if not there are again are the products. Personally, It is hard for me to leave Melaleuca, I have seen my grandsons asthma gone from severe to nothing; the eczema of my granddaughter disappear after 5 years of seeing her in long sleeves or since she was born; my wife whos artistic pains go to reasonable levels do you know how hard it is to see people suffer and myself wherein

I had doctors for 3 years trying to find out why my white count levels in my blood went from normal to leukemia levels and after taking their vitamins only did a 180 degree turn, I was already planning for the worst but Thanked GOD for
making Melaleuca. This is now a way of life for me and if it has done good for me dont you think I would share it to the world, of course I would! And because I do share it, I might as well take them up on the opportunity and teach people how to succeed in it. By the way, I have not pulled any money from my pocket for everything that my family has used from Melaleuca for the past 2 years, nothing, from the toothpaste to the nutritional products to cleaners, all of our consumable products even made some.

I am a GOD fearing man and what I say is the truth but testimonials can be great if you hear for yourself at times, better yet give me a call Tony 408-771-0296 and I will give the names and phone numbers of this people so you may hear it from the horses mouth. Maybe what you say are the best to your knowledge and I respect your input but some of the thing your said were totally inconsistent as far from what I know with Melaleuca. I beg to differ.   

The fact that you mentions you have been left "high and dry in MLMs" (plural) tells me you are into MLMs. Do you not attempt to refer anyone to Mela through their official program, thus adding them to your downline? 

IIRC 50% of the cost of their products go to the upline, leaving only the other half for the cost of the product. In other words, around half of what you pay is the cost of being in the MLM; if you do not "earn" at least that much from your downline, you are losing money, but it is easy to fool oneself that the product is so good that it is worth the inflated cost. This is why most MLMs try to sell "special" things that cannot be obviously compared to similar products in the marketplace. 

And it does not matter how good or honest the company may be (though most MLMs are pretty sleazy); it is mathematically impossible to have an MLM where the vast majority of people don't get screwed.

Also, all MLMs will always have a very high proportion of the types of people complained about in the original post, because you have a situation where you have tons of unsophisticated, uncontrolled sales people that make 100% of their money on commission. 

All this being said, since Mela frames building a downline as simply "referring" people, hopefully members do not feel the need to be "hands on" with their downline. That is how you get the real abuses; think Amway, where the moment you sign up they have you make a list of all your friends and family to "refer" (at least I don't think Mela does that). You still have people fooling themselves that they are not losing money, but I would hope it would not be as much. 

All that being said, take a look at Tony's post; it has the typical statements of a typical MLMer:

"They sold over a BILLION DOLLARS last year worth of products, so people must like their products, right?"
No, that is the whole point; people must like the "opportunity". The company would not spend 50% on commissions if they thought they could make all those billions without it. 

"Melaleuca has over 350 products" - so what? 

"Melaleuca works because they dont advertise and dont have any distributors (buy products to sell). All we do is word of mouth advertising, you like the product you share it.."

This has got to be the most bizarre thing that many MLMers say.  It is NOT "word of mouth" if the people singing the praises are getting compensated when a sale is made. And the bit about people not "buying products to sell" implies there is no markup, when there is indeed at LEAST a 50% markup. 

"We are paid on immediate commissions with several tiers of bonuses and handsome residual income, how GREAT is that!"
Would be fine if you were not required to buy the product to sell it (pay to play). Also, it is the only sales job in the world where you need to recruit other sales people to make real money.

"This is not a lottery, people work at it..."
Yup people work at their jobs as well. But in that case everyone's work can be rewarded without taking money from other employees. Also, MLMers often really mean "the 98% that lost money were just lazy".

"What is really great about Melaleuca is they genuinely want to HELP"
Well, while this is total BS, every company says this, MLM or no, so we'll let this slide.

"...getting them out of debt"
Consuming overpriced products will not get you out of debt. Since it is mathematically certain that the vast majority in an MLM will lose money, a lot more people will acquire more debt than get out of debt. It is a weird thing that MLMs tend to focus on the debt thing though; I mean, anything that makes you money will help get you out of debt. My guess is that if one thinks MLMs are a good way to make money, then they also make other poor financial decisions, thus a lot of them are in debt.

"This is more than a business for most of us."  "if you think you are coachable..."
OK, these are big, BIG red flags. These two phrases are basically saying "suspend critical thought and allow yourself to be manipulated.

I have been a customer for over 5 years with no intentions of selling or harassing my friends. I have been there, done that losing over $4k to Herbalife. A friend lost $15k with the same company. All my dealings with Melaleuca have been decent, upfront and truthful. Reps like the one the OP dealt with are the ones that give the company a bad name. Sad but true. Mela products are very, very good and stand on their own 2 legs even if you don't work it as an "MLM" I'm hesitant to even call it that because of the strength of the product line. I have been left high and dry in MLM's before and this is a whole different ball game. Mela is not for everyone and you are entitled to your opinion, but I have nothing but high praise for them.

First of all, congratulations on standing your ground, and recognizing right away that was a pyramid setup. However, I am a little surprised you met with her in the first place; whenever somebody approaches *you* for a "business prospect," and won't even tell you the name of the company, you pretty much *know* it is an MLM scheme. Hopefully you have learned your lesson on that one! 

To the poor sap who defends MLM (and if you *really* think this company is not an MLM, you are indeed a sap), the fact that they rake in a billion bucks just means that they are doing a good job fleecing people. It is not about the products, it is about "the dream". People do not generally buy products that are 3x as expensive as the same stuff they can grab much more conveniently at the store, products to where over 50% of the price goes towards commissions.

MLMs are about recruiting, not selling - that is why when you actually sell something, a lot more money goes to those that recruited you (and those that recruited them, etc) than you. That is also why in your rebuttal you did not ask if anyone wanted to buy your stuff, you asked them if they wanted to "team up" with you. The product is incidental. 

When you take into account expenses (including buying products yourself), something like 99% of people lose money in MLMs. And when a lady makes 84K in a year, you might think it works, as long as you leave out the little fact that less than one in one THOUSAND people in this org pulls in that much. And she has made that money by selling the dream to the other 999 saps that won't see that kind of money (which even then, is not exactly an impressive amount compared to what you could get with a real job, especially when medical, dental, and other benefits are taken into account).

Listen, I am not singling out the company you have aligned yourself with - ALL MLMs are like this, as it is an inherently bad, unsustainable business model. Out of curiosity, how much did YOU make in the past 12 months with this company?

What this person did WAS VERY WRONG and you should call Melaleuca to report them 208-522-0870. They can also show you how to cancel your membership but you do have to fax in a request, 1 minute. Let me share!

Fraud, Scam or whatever people say really doesnt matter. Or maybe, people dont read the out clause or terms and conditions before signing their name on the dotted line. It does not matter. Here are the Facts about Melaleuca, they sold over a BILLION DOLLARS last year worth of products, so people must like their products, right? Nowadays, no matter what business you go into, its products, products, products.
 
Pyramid systems have been outlawed in the US a long time ago and they dont even sell any products at all. Melaleuca has over 350 products. Dont let people mislead you; this is NOT MLM or no break aways. Melaleuca works because they dont advertise and dont have any distributors (buy products to sell). All we do is word of mouth advertising, you like the product you share it! In turn, we are paid just for referring people to Melaleuca and helping them register and thats it! The savings in advertising is their revenue sharing program, simple. We have no inventory control, no billing, no carrying of products. We are paid on immediate commissions with several tiers of bonuses and handsome residual income, how GREAT is that!
 
This is not a lottery, people work at it. If you can find a system that will make you money without working for it, let me know, Im interested. They have paid out over 2.8 Billion in commissions to regular people out there in the past 27 yrs. What is really great about Melaleuca is they genuinely want to HELP. This is Very Rare for a corporate identity. Helping people better their health; getting them out of debt; having a good personal life and preserving our environment for our children, is that a BAD goal to have?
 
This is more than a business for most of us. You really have to experience Melaleuca, and when you do, you too would fall in love with them, just like the more than 850 thousand families that have joined them. Sorry, but its hard to find sad storys telling lies here. What you will find are peoples experiences in how lives have changed because of Melaleuca. If you have time, take a peek at this http://youtu.be/F3FewVDiFkw  
 
A Successful Melaleuca breeds successful people and its not too late to team up with us. If you want to succeed and willing to work and if you think you are coachable, We Will Help because Melaleuca wants us to. We are just starting, when a laid off woman made about $ 84,000 in less than a year, you know it works.
 
Facts are facts but if you have more questions, give me a call anytime; Tony 408-771-0296. If NOT, then, Good Luck on your travels and I hope you find contentment!