Last Updated on July 18, 2022 by Matt Zavadil
Is Melaleuca a pyramid scheme?
You may have seen something online about Melaleuca being a pyramid scheme.
However, this couldn’t be further from the truth.
Now you know the answer: Melaleuca is definitely not a pyramid scheme.
Let’s help you understand how to make money as a Melaleuca distributor.
Here are five reasons why Melaleuca isn’t a pyramid scheme:
- Distributors receive commissions for their own sales.
- The company has been around since 1985.
- It offers products that are environmentally friendly and healthy.
- Distributors can build residual income by leading other people into the business opportunity.
- All distributors have an equal chance of success because they focus on customer acquisition rather than recruitment
I’m not involved with Melaleuca, by the way.
Since I got my start in multi level marketing back in the early 1990s, though, I’ve seen many people talk negatively about the industry.
As with many things in life, these beliefs arise out of ignorance.
And, as with most MLM companies, Melaleuca is a legitimate vehicle for making money online.
Let’s explore why I say that Melaleuca isn’t a pyramid scheme and how to make money inside its business model.
What Is Melaleuca?
Melaleuca is a network marketing company that sells environmentally friendly and healthy products.
The company operates as a multilevel marketing business, meaning that it compensates its distributors for both their own sales and the sales of people they recruit into the opportunity.
Related Reading: The Controversy Over What To Call Melaleuca
This type of compensation plan gives all participants an equal chance of success.
Unlike pyramid schemes, which focus on recruitment rather than customer acquisition, MLMs like Melaleuca emphasize retail sales to consumers.
Related Reading: Is Melaleuca an MLM?
What Is a Pyramid Scheme?
The Federal Trade Commission classifies multi-level marketing companies as legitimate if they allow their representatives to earn revenue by selling products.
The commission goes on to say that a pyramid scheme is formed when you only make your money through recruiting other people and then selling them the product.
What’s a Ponzi Scheme?
A Ponzi Scheme doesn’t usually involve a product. It’s all based on the recruitment angle.
It’s an illegal pyramid that relies on the idea of more people joining underneath you.
When there’s no one left to recruit, it collapses because these types of models use flawed pay plans.
They don’t reward those who sell products or services. The entire structure is typically done by someone promoting with other peoples’ money until everything crashes down around them.
Is Melaleuca a Pyramid Scheme?
The answer to this question is an unequivocal no.
There are several reasons why Melaleuca is not a pyramid scheme.
First, distributors receive direct commissions for their own product sales, not only the sales of people they recruit into the business opportunity.
Second, it sells real products that are environmentally friendly and healthy.
Third, distributors can build residual income by recruiting other people into the opportunity…
…perfectly legal, as it is when a real estate broker recruits agents and makes money on their commissions.
The broker earns revenue on “levels” below him or her, so ignore anyone you hear talking about “levels” being wrong in some way. Nonsense.
How Does The MLM Business Model Work?
Inside the typical multi level marketing company, you make money selling products.
You also can recruit other Melaleuca members into the business opportunity where they can sell health and wellness products.
Again, this isn’t a pyramid scheme because, in a legal MLM compensation plan, distributors earn commissions from product sales their recruits generate rather than merely from the number of people they recruit into the business.
Income from MLM businesses typically comes from three different places:
- Personal Sales Commissions – Paid when you sell the products to customers
- Retail Override commissions – Paid on the sales generated by your team (downline)
- Customer Acquisition Bonus – Based on new customers acquired and retained each month
All the confusion by the public arises from the fact that you can recruit. They label the recruiting as something “wrong”.
Melaleuca doesn’t pay its distributors for getting others “in” by joining Melaleuca. It only pays out when a Melaleuca member sells one or more of the company’s products.
Just like Amazon will pay you to sell products on its platform.
All perfectly legal folks.
Is Melaleuca a Multi Level Marketing Company?
I know some people affiliated with Melaleuca like to pretend it’s not one of the hundreds of network marketing companies conducting legal business.
You’ll hear people say it’s more along the lines of affiliate marketing.
I get that. But, how does Melaleuca work exactly?
You can sell only products and I agree, that makes you an affiliate.
However, you can also build a team and earn bonuses and commissions when your downline sells the company’s wellness products to their customers.
That’s the definition of network marketing.
Is Melaleuca a Scam?
Personally, I don’t see the hesitation from some Melaleuca members to call this legitimate company what it is: an MLM company.
Working to make money online promoting quality health and wellness products is something you should be proud of.
We live in a world where people are in desperate need of a part time or full time income that helps them feed their families.
Network marketing provides that opportunity without requiring the hundreds of thousands of entry-point dollars conventional or franchise businesses demand.
If you’re a Melaleuca rep, stand up proud and build it big. You’re helping customers get their health and wellness products at nice prices and you’re helping your downline make more money for their families.
Is Melaleuca a Quality Business Opportunity?
Is Melaleuca a pyramid scheme?
We’ve established that it’s not, OK?
Is it a legitimate company offering people the chance to make money online by building a multi level marketing business?
You bet it is.
Its compensation plan lets anyone with a desire to earn money do so by selling health and wellness products and/or recruiting people into the MLM company to do the same thing (more on the comp plan below).
It’s simple, really.
You have a legitimate company selling Melaleuca products to people interested in health.
That’s valid, as I see hundreds of companies selling health and wellness products out there.
You have a legitimate company with a solid Better Business Bureau rating using the multi level marketing model to help its distributors build teams and achieve their goal of making money.
By the way, many of the BBB complaints are hilarious. The majority of people complain because they’re paying a membership fee, which is exactly what they signed up for.
Again, I’m not a rep for the company…I’m providing my own Melaleuca review. If I was with this legitimate company, however, I’d have a lot of fun turning those negative reviews into positive advertising pieces.
What Should You Look For In MLM Companies?
Here are the key points to look for when you’re considering joining an MLM company:
- A solid product people want and need
- A good, solid company with a positive Better Business Bureau rating
- A simple and understandable compensation plan that rewards distributors for selling the products and building teams
- A strong support system to help distributors succeed online and/or offline.
Any reputable Melaleuca MLM review must report that the company includes these four factors.
Advantages Of Melaleuca
Let’s take a look at the advantages of running an online business with Melaleuca as you work toward making money.
You’ll Sell Health and Wellness Products
Today’s soil is depleted as commercial farming companies fail to replenish the vitamins and nutrients humans need to thrive.
Our culture and stores push fake food, pharmaceutical poison, and junk food on all of us.
Our children are obese because of these factors.
I’d say you can be proud to earn money by helping to improve society’s health situation.
Make Money Online Selling Melaleuca Products
The main advantage to running a Melaleuca business is that you can make money online.
Melaleuca has made it simple for its distributors to sell its health and wellness products by building an online business with the help of social media platforms like Facebook, Twitter, Instagram, and YouTube.
You can join Melaleuca for as little as $29 to sell its products at wholesale prices.
The company has a 90-day, no-questions-asked money-back guarantee on all of its products so you can be sure that you’re selling quality items to your customers.
You Can Get Paid Weekly
Another advantage of running a Melaleuca business is that you can get paid weekly on three types of bonuses:
You’re Building a Passive Income Online
As you sell Melaleuca products and help your team of distributors grow, you’ll earn passive income on team sales.
Creating a stream of passive income online by recruiting people is a key to making money with an MLM company.
Monthly Car Bonus
In addition to the weekly bonuses, you can qualify for a $1,000 monthly car bonus.
The car bonus goes out after you reach Senior, Executive, or Corporate Director levels.
Start Your Own Business For Less Than $30
One last advantage of running a Melaleuca business is that you can get started for under $30.
It’s the least expensive MLM company I’ve ever seen, and yet they sell high-quality products at wholesale prices.
Disadvantages Of The Melaleuca MLM Company
Any Melaleuca review needs to mention the disadvantages as well. A few of these disadvantages lead some to get into our original question of, “is Melaleuca a pyramid scheme”.
Melaleuca MLM Review: It’s a Direct Sales Company
Are there disadvantages that we must discuss when talking about MLM in general, and Melaleuca reviews, in general?
One disadvantage to working in the direct sales industry is that you don’t technically make money by owning a business.
Melaleuca (and all MLM companies) own your book of business. If you do something to violate the terms of your Melaleuca membership, you could potentially lose your downline and the average annual income that comes with it.
You’re also at a disadvantage because you aren’t unique to all the other reps working on their goal to make money with Melaleuca.
There’s a solution to this problem and I talk about it in this post.
I saw one Melaleuca review talking about another one of the MLM companies out there suing it for poaching. The reviewer was trying to answer the question, “is Melaleuca a pyramid scheme”, and revealed their ignorance around this issue.
Look, people do things all the time as independent distributors in businesses of all types: conventional, franchises, online businesses, etc.
And getting sued doesn’t mean we tear down an entire industry.
The President of the United States gets called into court when he does things that people need to sue for. Who’s calling for the end of that position? Get it? LOL
I added this as a disadvantage but don’t actually see it as such. If this type of stuff scares anyone off, then they probably should remain an employee.
How Can You Use Email Marketing To Sell Melaleuca Products?
When you want to use the Internet to make money with Melaleuca, you need to become good at using email marketing.
Email marketing is one of the most effective ways to sell your products online, and it’s a great way to build relationships with your customers.
As a Melaleuca distributor, you have the opportunity to build a list of prospects and email them regularly about your health products and opportunity.
You need to create compelling emails that will entice your subscribers to buy products from you.
One way to send helpful content via email is to create truthful, positive product reviews for subscribers. Use any success stories and use them as case studies.
You can also send general health and wellness tips and then link subscribers to your replicated Melaleuca website to buy. People love to purchase products after getting taught helpful information first.
Design your emails in a visually appealing manner and make them easy to read. You should also use a reliable email service provider to help you with your email marketing efforts.
If you use email properly, you can become a product advocate to your subscribers and achieve the next rank advancement bonus at the touch of a button.
Melaleuca offers dozens of products. Here’s a list of several of the most popular.
- Cleanse: Start your morning off with a powerful detox and enjoy life’s simple pleasures
- Phyto360: If you want to be healthy, we recommend taking two of these daily
- Renew Lotion: Have dry skin? Try this lotion that will make it feel smooth again in just minutes
- OxiClean: Tired of stained clothes? This laundry detergent will get your whites whiter and your colors brighter
- Citrusway: Feeling sick and congested? Take this supplement to help clear up your sinuses
- Safe & Mighty Toilet Bowl Cleaner: Keep your bathroom spic and span throughout the week without using toxic chemicals
- Naturade: Lose weight by eating healthy foods that will help you lose more than just a few pounds
- Sei Bella Lip Gloss: This lip gloss will give you a natural color that’s perfect for any occasion
- Mountain Cabin Premium Coffee: You can get a delicious, bold cup of coffee every morning with this product
- Citrus Magic: This multi-purpose cleaner will keep your home clean and smelling fresh
Success Is Rare With Melaleuca (Here’s Why)
Let’s review 10 reasons why most distributors struggle to make money with Melaleuca and then lump it in with other pyramid schemes:
Reason #1: They’re not following the simple system that has been laid out for them
Reason #2: They aren’t consistent with the work required to recruit people
Reason #3: Not selling enough products or services each month to have a significant impact on their income, lifestyle, and financial goals.
Reason #4: They haven’t committed to their success
Reason #5: They expect Melaleuca to do all the work for them
Reason #6: Don’t understand what to say to prospects
Reason #7: Negative attitude and mindset sabotage their success
Reason #8: They fail to take massive action
Reason #9: Forgetting that marketing is both an art and a science
Reason #10: They don’t have a clear vision of who they want to be or what’s possible for them inside this industry
If you’re willing to put in the work, you can become successful with Melaleuca.
However, you likely need new entrepreneurial skills to make it all work.
That’s why I created a FREE video training series that shows you exactly how to reach your income goals within your first year with Melaleuca.
Sign up for this free video training series today and learn all the details about what it takes to become successful with Melaleuca.
Can You Make Money With Melaleuca?
Of course, you can. Don’t allow a negative Melaleuca review or anyone else to tell you differently.
I understand you probably have many negative people in your circle of friends and family projecting all their doubts and fears about direct sales on you.
It happens to everyone in this industry.
Your job is to block those people out and focus on your goals and dreams.
Stop looking up the next Melaleuca MLM review and instead grab my free training that gets you positive, teaches you successful marketing tactics, and gets you around a community of other like-minded positive MLMers.
How To Make Money With Melaleuca
The best way to succeed with your goal to make money with Melaleuca?
Commit to becoming an expert online marketer. You need to develop the following Internet marketing skills to make money online with MLM.
Learn how to:
- Generate leads online
- Create an MLM blog
- Write great copy that sells
- Do social media marketing correctly
Once you have those skills, it’s just a matter of applying them consistently each day.
The system is simple, but it does require work on your part.
Are you willing to do what it takes?
If so, then Melaleuca is the perfect company for you to create success with.
I’ll teach you how to do all these things with this free Melaleuca Quick-Start training, as well as introduce you to an amazing community of other people in the industry.
Melaleuca Compensation Plan
Here’s how the Melaleuca compensation plan works:
When you sign up as a Melaleuca distributor, you can make money from selling products to customers and earning commissions.
However, the real opportunity here is growing your business by recruiting other people so they become distributors, too. When those recruits sell Melaleuca products, everyone above them gets paid on their sales volume because it’s team-based marketing.
According to the comp plan schedule, you can expect to earn anywhere from $27,600 to $278,200 per year after achieving Senior Director or above and following your Pacesetter schedule:
Work hard on the Leadership Growth Bonus to start hitting on bonuses that look like this:
If you’re absolutely brand new to Melaleuca, make it a goal to hit Director and Director II and hit these earning projections:
How Much Must You Spend Monthly In Melaleuca?
You can hit your 35-point monthly minimum for about $50 to $60 per month.
I saw a guy who wrote a Melaleuca MLM review complaining that this puts us into “scam” status.
Again, I’m not a member of Melaleuca myself, but it appears quite obvious that if you’re spending money on Melaleuca’s products, then you’re not spending money on the products you’re replacing.
It sure seems to me that you’ll probably come out around even.
Or, if it’s a bit more with Melaleuca, you’re replacing garbage products from box stores that fill your body and home with chemicals.
Appears like a deal here from a monetary and health standpoint, folks.
Should You Join Melaleuca?
If Melaleuca’s products and the opportunity appeal to you, there’s absolutely no reason to hesitate.
You’ll get to start a business with basically $0 invested.
I don’t look at anything less than $500 to join as investing much.
In fact, investing very little money in starting a business is a bad thing, in my opinion.
The main reason I see MLMers in all companies fail is because they don’t have enough skin in the game.
They quit, whine, and complain the moment it gets “hard”.
Making money online in anything requires the mindset to keep going when it gets tough.
I guarantee your Melaleuca journey will get tough.
Join, learn, get some result.
Learn more marketing skills and get another result.
Keep going, no matter what.
Don’t become like most people who end up as quitters in life.
Again, I invite you to grab this free Melaleuca Quick-Start training so you give yourself the best options for success.
Frequently Asked Questions About Melaleuca
Let’s review a few FAQs I see many people asking about Melaleuca.
Is Melaleuca a reputable company?
Yes, it’s arguably one of the most reputable companies in the direct sales industry.
Can I make a lot of money with Melaleuca?
It depends on your goals and efforts. Like any other business, the more you put in, the more you can expect to get out. However, Melaleuca offers its distributors an opportunity to earn income through team-based marketing.
My real question for you is this: Will you do what it takes to make a lot of money with Melaleuca when times get tough?
Is Melaleuca just for moms?
Although many women are indeed members of this company, the fact is that anyone who wants to join and invest in a home-based business opportunity will be welcomed with open arms by Melaleuca. The only requirement is having $50 to $60 per month.
Conclusion: Is Melaleuca a Pyramid Scheme?
Nope. It’s not.
I hope this in-depth Melaleuca MLM review helps you understand the company, its products, its business system, and its opportunity better.
If you’re a rep with Melaleuca and feel frustrated at your inability to generate quality leads for your business, I invite you to grab my Melaleuca Quick-Start Training.
It will help you improve your marketing skills and rank up consistently as you build a solid income for your family.