Is Melaleuca a Pyramid Scheme? (Shocking Truths Exposed!?)

Hey, welcome to my Melaleuca Review!

You might have been looking for effective organic products and wanting to give Melaleuca a chance to prove its credibility.

Perhaps you are aiming to be a part of this well-established business as your side hustle.

Whatever reason it is, it all comes down to one question: “Is Melaleuca a pyramid scheme?”

Firstly, I am really proud of you for taking the time to do your own research before purchasing any course or services.

Secondly, that’s how you find the best-proven method to avoid scams and make real money online instead!

I know how hard it is to believe something when it is too good to be true, and 99% of the time, it is.

So let's reveal everything about this company, the background, compensation plan, etc.

Let's dig right into it.

Melaleuca Overview

Name: Melaleuca

Website: https://www.melaleuca.com/

Owner(s): Founded by Frank L. Vandersloot

Price: An initial $29 plus additional $19.90 per year

Launched: 1985

SAP Ratings: 20/100

Melaleuca's Logo

Best Suited For: Anyone looking for eco-friendly products or alternatives.

Summary: This health and wellness company is far from being a pyramid scheme, although the constant debate of consumers about whether it is an MLM or a CDM is still unending.

Melaleuca’s focal point is improving an individual’s physical,
environmental, financial and personal wellness. With three decades in the industry, it still has an unshaken reputation from raking billions of revenues annually.

Despite numerous complaints, a lot of people are still committed to taking their chances with Melaleuca.

And as the company claims, the pace of people they are converting monthly is crazy fast.

Recommended?: Not a Chance

What Is Melaleuca?

Melaleuca had built its credibility throughout 34 years of consistently providing over 400 health and wellness products to millions of consumers around the globe. 

It was founded in September 1985 by Frank L. Vandersloot and have been catering to people from the United States, Canada, Taiwan, South Korea, Australia, Puerto Rico, Malaysia, New Zealand, Ireland, the Netherlands, Singapore, China, Germany, Mexico, Austria, Poland, and the United Kingdom.

This company highly focuses on giving the best quality to its consumers. It affirms that their products are of better value than what anyone can avail at the mall or in any retail stores. 

It claims to have “exceptional products at reasonable prices.” Melaleuca sure has the bragging rights as a debt-free company. 

By 2014, Melaleuca moved to a 371,000 square foot headquarters in Idaho Falls. 

This global corporate office became the symbol of the company’s explosive growth and the commendable efforts of its growing community.

Other than that, Vandersloot made history in 2018 through a record-setting of surpassing the company’s own annual profits. 

That year ended with a banging $2 billion worth of generated revenues!

The latest on Melaleuca as of this writing is it’s 2020 annual convention with a massive launch on over 70 cities in the United States alone and 8 in Canada. 

The purpose of this event is to introduce its newest products along with the improvements in prior consumer favorites.

These ranged from new flavors to new fragrances with the aim of intensifying the quality of their products and exciting customers with more variants.

You can read about it here . According to their website , they are the largest online wellness shopping club in North America.

In addition to that, they have over 1 million shoppers every month and 96% monthly reorder rates.

Melaleuca's Product Line

Every buyer goes through a journey before settling on which product fits their budget, or what has more value or whether it fits their category of a good product.

Initially, one would be aware of their possible options. Then, they’ll research it and compare prices or benefits.

After considering every important aspect, that’s when they make their purchase.

Consumers nowadays are wise in terms of making decisions when it comes to determining which product is best for them.

So what does this have to do with Melaleuca?

It’s not a surprise to realize that on any website, a viewer’s retention is important. As a consumer, I’d like to see what I want to see the moment I land on any e-commerce site.

Unfortunately, Melaleuca doesn’t do that. If you go over their products, all you can find is information about its ingredients and benefits, but no price at all.

Product Line Categories:

  • Nutrition: This has 3 subcategories namely; Vitamins and Supplement, Food and Weight Loss, and Hot Beverages.
  • Medicine Cabinet: this ranges from first aid to medicines for cold, flu or allergy, to acne treatment and more.
  • Beauty: From skincare to fragrances.
  • Household: Cleaning and laundry needs and home fragrances from varieties of scented oils, candles, wax and more.
  • Bath and Body: shower essentials, body, skin and dental care for kids and adults.
  • Essential Oils: varieties of 100% pure essential oils.
  • Logo Gear: they are also offering men and women’s apparel, tumblers, bags, banners.
Melaleuca's Product Line

From these many categories, it’s no surprise that their products range from over 400 to choose from.

Though it’s quite appealing to have a lot of options, most buyers tend to find it excruciating to go over everything.

If you are adamant about finding out how much they charge for certain products,
you need to go through the hassle of signing up within the website.

Another thing, it will only be possible if you contact the one who referred you or if you will provide
your phone number to request an online account.

Once you have successfully followed the steps, you will then have access to their marketplace.

Thus, the marketplace offers no actual physical products. As from what I have seen
from browsing over their page, they have categories that include:

  1. Credit Card
  2. Home Security
  3. Infoguard Identity Protection
  4. Health Care Savings
  5. Melaleuca Deals


Sadly, these are only accessible to anyone who signed up as a member of Melaleuca.

But I have read an article regarding the Infoguard Identity Protection and it claims to be more affordable than most identity theft protection offered by other companies.

Although, as a person who clearly sees not one price on their website makes it hard for me to believe that the cost of their products is worth it.

I have read quite a few comments and reviews from people who have tested their products and ended up unsatisfied, making it more difficult for me to be convinced about “the better value” it’s supposed to be providing.

Since they have recently launched all-new improved products, you can see for
yourself whether it is worth the hype or not. Check them out
here.

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Is Melaleuca a Pyramid Scheme?

Melaleuca is absolutely not a pyramid scheme. Also, this company is not an MLM. People’s allegations that they are operating as a multi-level marketing organization is firmly denied by its founder.

Evidently, this company is undeniably strong in terms of declaring the design and operation of their business.

Melaleuca claims that its business model is nowhere near multi-level marketing. Even though most people see it as an MLM, it was strongly repulsed by Vandersloot.

In fact, he claims that the operation of their company is called Consumer Direct Marketing (CDM).

Could there be any difference between the two? From my point of view, it appears to have obvious similarity and both are entirely methods of networking.

MLM as we know it usually generates income through selling products and can heavily focus on earning more through recruiting. Rather, it could be a balance of both.

But a CDM is mainly compensating individuals directly from the company and not from the upline of the member. In addition to that, instead of calling CDM members distributors, they are called consumers.

Moreover, as a consumer, it’s your responsibility to consistently purchase products for your own use.

Lastly, it is believed that the form of inviting others to be a part of the community is referral and not recruiting.

In conclusion, a lot of Melaleuca’s consumers will go through great lengths of defending their company whenever anyone states it’s an MLM. What about you? Do you believe that there’s no way this company operates as an MLM?

Is Melaleuca a Pyramid Scheme?

How Much Does It Cost To Join Melaleuca?

Are you really that adamant to experience Melaleuca? Perhaps you are worried that becoming a member could be burdensome commitment.

Gladly there are two options you can choose from.

Regular Member

If you are only interested in purchasing their products and have no intentions of their business opportunity, you can become a regular member for free!

All you have to do is submit a Customer Membership Agreement, follow the required steps and you are good to go. But, you must take note that as a regular member you only have limited power within their website.

For sure you will already have access to their product store and see their prices (finally!), but you may have a few restrictions when it comes to their marketplace.

In addition to that, you will have to pay for products at full price.

Preferred Member

Are you aiming for that 30-50% worth of discounts on products? Well, in order to achieve that, you must become a preferred member.

Not only will you submit a Customer Membership Agreement, but you are required to pay $19 plus applicable tax fee. The perks of a preferred customer don’t stop at discounts.

You are eligible to earn Loyalty Shopping Dollars plus other membership perks in their marketplace. If you are interested in earning profits within Melaleuca, you can do that by signing up as a preferred member.

To do that, you must submit a Customer Membership Agreement along with Melaleuca Independent Marketing Agreement for the same price.

Keep in mind that by doing so, this gives you the authority to enroll other customers and eventually build your Independent Melaleuca Business. From there you are entitled to commission and other bonuses!

Also, there a need for annually renewing your membership and it will cost you $19 as well. Another important thing to remember is that as a preferred member you are committed to a monthly purchase of at least 35 product points. 

For every product existing in their store, each has an equivalent point value. Melaleuca states that this is important for a consumer to know the number of products they are required to order in exchange for getting a 30-50% discount.

In addition to that, these points are vital to calculating the referral commission to be paid the consumer who has enrolled you,

Melaleuca's Compensation Plan

There are different ways of earning commissions according to their compensation plan. First, you will gain profits from the referrals you have successfully enrolled as customers.

In the first month of your enrolled customer, you will receive 50% off Product Points. Then, in the second month, that’s the starting point you will receive profits from every purchase of all of your enrolled customers.

In addition to that, you are entitled to commissions depending on the number of Active Personally enrolled Customers you have within a month.

Another way to gain profits in Melaleuca is through the customers enrolled by others.

For every transaction made by the customer enrolled, you will earn 7% of product points.

In their compensation plan, they only stated that you will get bonuses from the “customers enrolled by others” but didn’t entirely clarified whether the mentioned “others” are the active people, you have enrolled within the company.

Though there are some other statements and reviews claiming that Melaleuca doesn’t compensate people who are “recruiting” for their company.

Their compensation plan says otherwise. As far as this company claims that they are in no way operating like an MLM, they also have levels of statuses that their members can get promoted to.

These are also depending on the performance and the number of active people a member can keep in what they call your Marketing Organization. For every advancement their consumer achieves, commission increases as well.

Furthermore, whenever the people within your Marketing Organization moves to a higher status, you will be paid bonuses accordingly.

This is just one of the reasons why people believe that Melaleuca is also operating as an MLM.

In fact, most MLM companies have a few levels on the hierarchy but getting to the top is absolutely not a piece of cake.

Here are the statuses in Melaleuca:

  1. Director 
  2. Senior Director 
  3. Executive Director 
  4. National Director 
  5. Corporate director 
  6. Presidential Director 

Unfortunately, under every rank, there are different levels you still need to surpass before you can get promoted.

Overall there are 49 statuses. Melaleuca guarantees that it won’t entirely take you long if you work your hardest.

Well, I have always believed that nothing is impossible as long as you are passionate and duly motivated to achieve it.

Note that, the more people you can keep active as consumers is another way for you to get paid. Moreover, there is a chance you will also qualify for a monthly car bonus only if you become a Senior Director.

Wait, there’s more by the time you reach Executive, National, and corporate director, you will have the power to choose 2 more cards that Melaleuca will pay for.

Do you remember that most MLM companies also have this option of motivating their members to do their best to work hard to qualify for a monthly car plan?

Perhaps you have heard about Mary Kay’s career car and that iconic pink Cadillac?

Also, you can check their compensation plan and income statistics for more information.

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Is Melaleuca Accredited By The BBB?

Undoubtedly, a company that can manage to consistently keep an A-plus rating on BBB (Better Business Bureau) is commendable.

How much more if the business was able to maintain it for three decades? Needless to say, Melaleuca may have kept it that way for a really long time but, it doesn’t mean that it is a perfect company.

I am not entirely doubting the credibility of Melaleuca. My point is, customers will be disappointed at one point or another.

Despite its high rating, a business can never be free of complaints. It’s as obvious as it gets, we can never please everybody.

Though they have kept their rating for a very long period of time, there’s also quite a consistency in what most of their consumers are complaining about. We will dig deeper into that later in this article.

Melaleuca's BBB Report

What I Like About Melaleuca/ The Pros

1. Constant Innovation or Improvements


Any buyer loves a company that focuses on catering to their needs.

It is important for any consumer to know that the business they have trusted and invested in listens to customer feedback and does something about it.

Melaleuca aims to provide the best of the best for their consumers. From what I have learned in the basics of marketing, conversion rates are important but what matters the most is the customer retention rate!

In order to increase retention rates, you need to constantly give buyers something of value, either by launching new products and services or improving the prior merchandise it offers!

Most customers are eager to try different options and are always intrigued by product improvements.

They will always go for something that effectively lightens their burdens. Gladly, Melaleuca is staying true to their words of enhancing people's lives!


2. Refund Policy

Melaleuca is confident that its products will satisfy the needs of anyone who uses them.

That’s great! But are the products really worth the price?

I may not have the first-hand experience with any of Melaleuca’s goods but as far as I have come across complaints… I am not quite sure whether the cost of any of it is truly worth it.

Either way, for every product they offer, even the membership as well
is backed up by a refund policy you can take advantage of any time.

Though, they doubt that anyone would return anything since they are assured that they are offering high-quality and affordable products.


3. Eco-friendly products

It sure is nice that people nowadays are looking for organic alternatives and Melaleuca has that.

The fact that they avoid using harmful chemicals in the production of their products is an ideal aspect for most. Especially at this point, that
being environmentally conscious is not an option but a must.

What I Dislike About Melaleuca/ The Cons

1.Unending complaints

I came across this website that has hundreds of complaints regarding Melaleuca’s products and services.

The most common that people have been dreading over quite some time is the cancellation process.

Though it is recommended to call them for faster processing, people are only getting furious about calling over and over again and no one ever answers.

What’s more frustrating is when they do get answered, but doesn’t entirely process the cancellation.

Sure it’s nice that Melaleuca is dedicated to creating innovative ideas on intensifying the quality of their products. But I do believe that they should put the same effort into addressing these complaints.

Believe it or not, out of 738 reviews there are only 4 issues resolved. If you go over them, you will only come across similar complaints regarding difficulties to cancel.

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The last complaint I have read regarding that matter was back in 2014.
As I was saying, here’s the latest complaint filed on BBB.

Its proof that up until to this point its what consumers are still having difficulties getting their cancellations processed thoroughly.

Unfortunately, whenever a consumer tries to address these kinds of encounters, they will only get a response saying that Melaleuca has never received any request for cancellation.

Despite the rating on BBB, there is still quite a huge sum of complaints and it sure kind of raises a red flag for most people.

If you are interested in finding out experience s of people who worked for Melaleuca, you can see them here .


2. The Company Test On Animals!

There’s a letter from Vandersloot in response to a consumer’s question regarding the company’s stand on animal testing.

They have admitted to conducting laboratory tests on animals and resulted in the deaths of the rats.

Also, they have a product called Provex CV made to increase the cardiovascular rate and was used and tested on dogs.

Despite the success in results, it still a red flag since they tested them on
animals. You can see for yourself whether Vandersloot made his point or not.

Check it here.This is a screenshot from PETA’s statement regarding Melaleuca’s product testing on
animals.


3. The Constant Denial

Though there are obvious signs screaming that Melaleuca is an MLM, it is strongly denied by its members and of course, the founder.

An attorney named Kevin Thompson made a statement regarding the nature of Melaleuca’s business model.

He explained it thoroughly in the video below:

Is Melaleuca just trying to avoid being known as an MLM just because a few people aren’t entirely fans of that type of business model?

Truth be told, but there are a number of MLM companies that have negative connotations on some individuals but, there are also tons of MLM’s that are successful and continuously trusted by the majority.

Even though they have made it clear that they are in no way operating like any MLM, a lot of people still don’t buy that.

If you go search for Melaleuca on Google, a lot of reviews are pertaining to it as one.


4. Lack Of Transparency

As I have mentioned earlier, regarding the buyer’s cycle, it is important that
consumers will immediately see what a company can offer them.

Knowing the prices of the products they want to purchase must be visible within the website. But, Melaleuca only gives this privilege to its members.

Let’s say I’m interested in one of their supplements, and I went through the hassle of becoming a member, only to learn that it was out of my budget.

That’s time-consuming and frustrating. Plus, the only chance I can get a discount is by becoming a preferred member and that will still cost me.

Plus, the fact that you can only learn more about the business opportunity within the company only if you talk to one of their representatives.

The prices are hard to find already so it’s not a surprise anymore.


5. Obligated Purchase

Like most MLM, there is a quota of purchase in order to stay active. This is not different from how Melaleuca obligates its consumers to have a certain number of monthly product purchases.

If you are also interested in selling their products, you will have to buy them yourself.

In order to acquire the discounts as a preferred member, you must hit the quota required which is over 35 product points for a month’s purchase.

At this rate, if every consumer you enrolled does this, it will ensure your income.

But the thing here is, the monthly purchase is an obligation that may cause other members to get tired of and just back out of the business.

In my opinion, this is just costing you more money than you can actually earn.

Is Melaleuca a Scam?

Melaleuca is far from being a scam. Truth be told, a lot of companies, whatever the business model is, struggles to stand strong for decades.

A company this strong had its fair share of backlashes from unsatisfied customers, several complaints of being a scam, but had proven it’s trustworthy reputation over the years.

If you are adamant about trying out their products, then go for it. But I would not recommend it if you are looking for a stable and passive income.

I have reviewed countlesss MLM companies here on this website, Noonday Collection, Better Way Designs, Emris International, they are all legit but not good enough.

Melaleuca is not a pyramid scheme but its business model is another thing to question about.

It is clearly an MLM but that’s not what the members and it’s founder seem to believe it as.

The amount of time that Melaleuca had been in business is definitely admirable.

But the income opportunity they have is not entirely ideal. There are other ways you can generate profits even more effectively.

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By reading my review on Melaleuca, you should know by now that I am not a big fan of MLM, and that's not because I hate them or anything.

I, personally, had a very bad experience with MLM thus why I am not recommending it to anyone.

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