Hello and welcome to my Melaleuca Pay Structure & Simplified Compensation Plan Breakdown.
In my Melaleuca review I am going to cover some details about the company and the products, but focus more on the compensation plan and try to simplify the pay structure and commissions that you can earn with it.
I will also go into how to build a Melaleuca business online with a proven strategy that will not go against the advertising terms and conditions that Melaleuca has in place.
You are definitely going to want to check that information out first before even attempting to market your Melaleuca business online because the company will terminate your position if you do not market your business online correctly!
The Melaleuca Business Opportunity Video
Now that you have an overview of what Melaleuca is from the CEO Frank VanderSloot himself and what it’s all about in the video that I shared with you above, I wanted to go into why I created this review article for you.
I believe strongly in providing value.
If you browse through my website you will see that I am providing a ton of value.
The value you will get here is not only going to empower you it is going to help increase your wealth by learning more, and it also helps me too.
The benefit that I get is that I feel good by just giving back to the community.
With that said, I am mainly sharing this specific Melaleuca review to help your research into this company.
When you research the companies that you are interested in, it just makes you more knowledgeable on the opportunity that you want to join so that if you do decide to join you have that much more power to succeed.
Also by researching the differences in various companies, you will have that knowledge to take with you in the future.
In time you will understand your weaknesses and strengths when building so if you start to build a new company you know if the company is right for you in the sense of building a business.
Plus, knowledge is power, and the more knowledge you gather the more power and money you can make.
With that said, let’s go ahead and dive into this review.
Before Melaleuca Was Melaleuca
Before Melaleuca was the Melaleuca it is now it went through some major changes.
Melaleuca started with the company name “Oil of Melaleuca” back in September 85’.
Frank L. VanderSloot was running Oil of Melaleuca because of Roger Ball and Roger’s brother in law Allen Ball.
The company was a mess when VanderSloot took over according to him.
The FDA eventually came and shut the company down in 85’ due to over-exaggerated claims of the products curing ailments and also because of the exaggerated cost to get started which was about $5,000 at the time.
After all of that mess was sorted out, Melaleuca Inc. was formed but at a price.
Over half of the old Oil of Melaleuca distributors came over to the newly formed company that supposedly solved all of the issues from before when the company got in trouble.
The Melaleuca Company
Melaleuca Inc. was formed in 85’, the same year that the previous Oil of Melaleuca was shut down.
It was founded by Frank L. VanderSloot and is still president and CEO to this day.
Melaleuca Inc. is a Multi-Level Marketing company that sells personal care products, cleaning supplies and nutritional supplements that are environmentally friendly.
Melaleuca operates in Idaho Falls, Idaho, and also in Knoxville, Tennessee.
It also does business internationally.
There are 3 different ways products are sold which are:
- Through the Website
- Retail Locations
- Independent Reps
Any sales made by the Independent Reps or referral marketing will earn the referring distributor a commission.
The company trademarked the term “Consumer Direct Marketing”, which is a term used for the commissions a rep can make through this type of marketing practice.
Fun Facts About Melaleuca
- The company generates 25% of their total annual revenue from Taiwan, Korea, Japan, Australia, New Zealand, and the UK.
- In 2005 it was reported that 1 out of 60 homes in Taiwanese purchased Melaleuca products monthly.
- In 2014 1 out of 200 households in the USA was a customer.
- In 2011 Melaleuca was reported a gross sales income of over $1 billion dollars and $1.13 billion in 2012 and just 14 months after that to reach $2 billion.
- There are more than 2,000 employees at the Idaho Falls establishment.
- Melaleuca is a member of the Direct Selling Association (DSA).
- As of March 2018, Melaleuca has paid out over $5.1 billion dollars to its distributors.
Melaleuca’s Shaky Past
Between ‘91 and ‘97, Melaleuca was going back and forth with legal problems they had with the Food and Drug Administration and the attorney general in Michigan for various marketing violations.
They were claiming Melaleuca to be an illegal pyramid scheme and was issued a cease and desist order with the states of Michigan and Idaho.
Melaleuca signed it and agreed to the terms to not engage in an illegal pyramid scheme.
In ‘97 the FDA sent the company a warning letter for “false and misleading” claims about 2 of its products.
Basically, Melaleuca complied to everything, and terminated the reps that were responsible for the misleading claims, and sent out strict letters to all the distributors saying that for any misleading or false advertising practices that they will be terminated on the spot.
Melaleuca got through this and continued on shortly after.
Melaleuca Products Overview
Melaleuca offers over 400 wellness products.
For the $19 per month membership, they give you a 30% – 50% discount on all products not including shipping.
What Are The Best Melaleuca Products?
With the number of products that Melaleuca have (over 400), the best product list will be very subjective depending on who you are, whether you are a man or a woman, and what age you are.
They have so many products that even if I create a top 10 list, my list could be completely different from 10 different people.
So how would I narrow this list down?
Well, let’s take what the industry standard is.
Weight loss coming in first as an industry leader as far as sales go.
So I would say that the supplement and nutritional products as a whole would be a big seller.
But then you have the general health and beauty supplies that are a major seller in general.
And then you have the essential oils that everyone must have in their grocery cart just because of all the benefits, the allure, and lower cost they are compared to the other products.
So if I were to break it down by category, I would say those categories are the top sellers since I can’t get a hold of any information about what products account for the most sales made with the company.
Here is a video that I found on one of the newest promotions that Melaleuca has published at the time of writing this review.
There should be no doubt in anyone’s judgment when saying that Melaleuca’s products are of the highest quality.
They have one of the highest if not the highest when it comes to quality of all of their products.
I believe a lot that had to do with the quality of the product they come to have now was due to the circumstances that happened in Melaleuca’s Shaky Past section.
Are Melaleuca Oils Therapeutic Grade?
There is a ton of people asking the question if Melaleuca’s essential oils are therapeutic grade.
I’m not sure where they got it in there head to ask that question, but here are the facts.
So what does therapeutic grade mean?
Therapeutic is defined as, “of or pertaining to the treating or curing of disease,” or “to treat medically.” Another definition is “serving or performed to maintain health.”
All essential oils, by definition, are therapeutic grade!
But with that said, even though I gave the definition of what Therapeutic Grade means in reference to essential oils as a whole Melaleuca does not claim that their essential oils will cure or help in any way to improve your quality of life in any way.
Now with that said, some of the distributors might tell you a different story.
So let’s move on.
Now we will dive into the Melaleuca compensation plan pay structure.
Melaleuca Pay Structure Breakdown
The Melaleuca pay structure is designed in the unilevel styled Multi-Level Marketing compensation plan.
This means that all of your personal referrals will be placed on level one only and none of your personal referrals will be stacked or placed below other personal referrals.
There is no spill-over involved with the type of pay structure.
About a year ago from writing this review, they changed their compensation plan to where it pays more in the front end rather than the back end.
This change had a few results both good and bad.
- It caused new members to be able to make more money faster.
- It cause more momentum, sales, and excitement.
- It caused more members to promote.
- Many top leaders residual commissions incomes were reduced
- The residual percentages for all members per referrals preferred customers were reduced.
- Some of the leaders left to find new opportunities to pursue.
Although there were some bad points to this change, the overall business decision was a great one to implement for the company.
With that said, I wouldn’t be so happy with that type of change to the compensation plan after I would have worked it for so long for the company to just change it like that.
I would of personally feel misled, and feel let down by the company if I were a distributor of the company.
These are my personal thoughts and feeling from what I heard in the field so my thoughts are just opinions and not facts.
There are always 2 sides to any story.
Another good pay structure to check out – My doTerra Compensation Plan, Company and Products Review
Melaleuca Compensation Plan Breakdown
The Melaleuca compensation plan structure is basically broken down into 2 ways now.
Commissions account for any upfront purchases made through personally referring customers and personal referrals as well as through personal referrals referred members as well when qualified.
Bonuses are the way that the company came up with to push the momentum to have representatives to push harder right after they join the company.
It was a bit different before, but since it has changed we will not cover the past.
With the commission’s model, you earn commissions from people that were enrolled by you and also enrolled by others that are on your direct team/organization.
You also have a bonus commission points that you can earn for presentations made by simply sharing the Melaleuca opportunity as well that will contribute to your commissions.
What Are The Commission Earned By The Customers Enrolled By You?
When you enrol a customer or referral, you will receive 50% on the “points” that the product is listed at, not the actual dollar amount which is important to note.
This 50% commission is earned on the customer’s orders for the first 3 months.
Starting from your customers 4th month going forward your percentage that you will earn from the “points” from all the products purchased from all of your personally enrolled customers and referrals will be determined by how many Active Customers you have for that month.
Here is the breakdown of your personal referrals recurring income for the 4th month moving forward:
- 1 – 7 = 7% per month.
- 8 – 19 = 14% per month.
- 20 + = 20% per month.
What Are The Commissions Earned By The Customers That Are Enrolled By Your Personal Team/Organization?
You will earn commissions by the people that are enrolled by your personals and their personal team/organization.
This is calculated by taking 7% of the product points purchased by them.
The number of levels/generation down that you get paid on depends on what rank or what Melaleuca calls “Commission Rate” you are at.
Here is a breakdown of how many levels down or “generations” down you get paid on with the level or “rank” you are at.
- Product Advocate – 2 generations/levels down.
- Product Advocate 2 – 3 generations/levels down.
- Product Advocates 3 – 4 generations/levels down.
- Directors – 7 generations/levels down.
What Are The Commissions Earned For Presentations Points?
This is earned when you hit the status or rank of Director 5 or higher.
These extra commissions will trigger on your 11th presentation point and all other PP’s you earn after the 11th presentation point for a single month.
The presentation points start at 0 points for every new month.
On your 11th presentation point earned and on you will get paid $5 in additional commissions.
If you earn 25 presentation points for any month that you are a Director 5, you will have earned $75 in additional commissions for that month on top of any other commissions earned through the compensation plan
Leadership points are earned in a couple ways.
The first way is by enrolling new members.
3 Points are awarded to the enroller and 2 points are awarded to the member that presented the company to that customer/referral that signed up.
If you are both the presenter and enroller, then you will be awarded the 5 total points.
The second way to earn is from the points that are earned when you hit the rank of Director and above.
The person who earns the most points in your organization in 3 months will earn an additional 10 points.
Bonuses are paid in 3 ways which are:
- When you advance in rank
- When those referrals in your team/organization advance in rank.
- And finally when you qualify for a car bonus.
There are 49 Statuses in the Melaleuca compensation pay plan structure.
The higher your rank advance the more points you receive.
First, you need to complete the Independent Executive Agreement application and you must also watch and complete the “Foundations” video in order to get this bonus.
You must complete these steps within your first 2 months after enrollment to be eligible for the Pacesetter bonus.
When you qualify for this bonus you will double the points you get when you hit the Director ranks and Senior Director ranks.
Also, you must advance in rank/status at the specific timeline specified by the company, each status achievement has a different timeline.
You can refer to the chart before for reference.
You qualify for this bonus when one of your personal referrals advances from one status up to the next starting with Director.
When your personal advances to the next status/rank, you will match what they get in earning as far as their advancement bonus or the pacesetter bonus when they advance in rank.
You will receive these earning in the same month that they get them.
When your personals advance from Senior Director 2 to Executive Director the commissions you will receive range from $2200 to $5000.
To qualify for this bonus you must get at least 1 leadership point with a 3 month average for Directors and Director 2 to get this bonus.
Directors 3 through 5 must have 3 leadership points to qualify for this bonus with a 3-month average.
Directors 6 and above need to have a 10 point Leadership point average for 3 months to qualify.
Expanded Mentoring Bonus:
When you’re at the rank or status of Director 3 through Senior Director will receive a one time 100% bonus of their rank advancement bonus when they reach that rank.
You will also receive 100% matching bonus for every personally enrolled personals that reach Senior Director 2 through Executive.
Leadership Development Pool:
First of all, to qualify for the Melaleuca Leadership Development Pool you will need to meet these 4 things:
- You must be a Melaleuca Marketing Executive for 6 months.
- Enroll an average of 2 customers per month. Or maintain one new Director every 3 months.
- Senior Directors must have an average of at least 20 Leadership months every 3 months.
- Executive Directors must have an average of at least 30 Leadership points every 3 months.
Qualifying Senior Directors share in a company pool totalling .25% of the total company points each month.
Qualifying Executive, National and Corporate Directors share in a pool that is equal to 1% of the company’s total product points for each month.
The share that is given to you is divided by all the people that share in that same bonus pool that you are qualified for each month with the same rank.
After 1 year of enrollment, your shares are doubled.
After 2 years your pool shares are tripled.
Refer to the chart below to get a visual representation of what this looks like.
Leadership Growth Bonus
This is a bonus that is given out when you reach the rank of Senior Director and above status.
This bonus also has a few qualifications to receive these bonuses which are:
- You must have new growth in your organization in a 2 month period.
- You must produce an average of 30 Leadership points per month.
- For the $3000 bonus and above, you must meet all prior qualifications and have a Senior Director status or above for at least 5 years.
Monthly Car Bonus
When you hit the rank or status of Senior Director Melaleuca will pay you a car bonus.
Her is how it is broken down:
- Senior Director = Receives a $500 Bonus Per Month
- Executive Director = Receives a $1000 Bonus Per Month
- National Director = Receives a $1200 Bonus Per Month
- Corporate Director = Receives a $1500 Bonus Per Month
Melaleuca Compensation Pay Plan Overview Charts
Here are 2 additional charts below that visualize the point structure per rank including additional bonuses you can receive when qualifying for them.
Another good article to review – The Worst Type Of Multi Level Marketing Companies
Important Things To Know About The Melaleuca Pay Plan
- There is a fine print section of the Melaleuca compensation plan .pdf that you must read over when you are trying to qualify for almost all of the commissions and bonuses.
- Melaleuca has over 15 requirements you must do in order to receive the majority of commission and bonuses.
- For example:
- Retention is big with how the pay structure is written out. They cut the percentages down as far as some of the commissions that you qualify for if retention is not met fully in the Advancement Bonus.
- The car bonus has guidelines for the particular car that you can get.
- They have it in their terms that they can change any part of the compensation at their discretion without warning.
- Volume levels have certain criteria for qualifying for certain commissions.
- If one of your personally enrolled passes you in rank you will not qualify for any bonuses that you would of qualified for if you if you were at a higher rank from them.
- It is required you to attend leadership meetings if you want to qualify for some of the bonuses.
How Much Does It Cost To Join Melaleuca?
To become a preferred customer and receive the lower cost benefits the cost would be $25 per month. You will need to fill out the customer member agreement to a subscription to the Melaleuca’s product catalogue, a membership portfolio and updates on health and wellness and all products.
When you submit the customer membership agreement and Independent Marketing Executive agreement to earn commissions the cost would be $29 plus tax.
Along with what you get for becoming just a preferred customer, you will also get a membership kit.
The annual renewal is $12 US, ($15.00 CDN) plus tax.
Melaleuca Final Thoughts & Recommendation
This was quite an intensive look into Melaleucas compensation plan.
I’ve been a customer of theirs a few times but never built the business part.
When diving into information about the pay structure and how it works I found several multiple instances of their compensation plan on their own site!
And they were all different!
So when I was writing up information on the commission plan I had to go back and rewrite it.
Luckily only 1 time, but it does get frustrating.
That leads me to my next thought.
This company must have gone through several changes to their pay plan which might be good for business for the company, but how does this affect the distributors that are building a business with it?
I honestly didn’t take the time to contact anyone that has been building the business for at least a year, but it that is you, tell us how the changes that the company has made by leaving a comment below, good or bad.
With that said, after I finally found the correct information about how the Melaleuca compensation plan works, what are some good points and some not so good points?
Some Pros about the Pay Structure
- Very strong long-lasting, and “by the book” pay plan.
- This is a pay plan designed for initial excitement with a great upfront commission structure and long-term growth.
- Pays out well when you meet all the qualifications.
Some Cons about the Pay Structure
- Many qualifications to hit certain commissions and many of the bonuses.
- A lot of variables and hoops to deal with when you get to the higher ranks.
- Very confusing comp plan for the new builders to understand
**Make sure to check out the “fine print” section to the compensation plan pdf document.
I didn’t want to go too in-depth with my pros and cons simply because a lot of it is subjective and are my opinions.
How would I Make Money With Melaleuca?
You need to make contact with many people to share the opportunity and the business with.
Make a list of everyone you know.
Tell complete strangers about this amazing opportunity that you have.
With that said, building any Network Marketing company is tough!
Believe me, I built a few teams in a few companies that helped me earn amazing income, but I failed to build a few as well.
If I were to start all over, I wouldn’t have started with Network Marketing, I would have started with some type of affiliate program that is offered on the online.
Because I have found that more people, including myself, have much faster success and make more money when starting with some type of affiliate marketing program.
This is why I highly recommend checking out my resource below if you want to make money quicker, easier, and is a great learning experience you can then take with you to build any other business online.
Including a Network Marketing company like Melaleuca!
But if you already joined Melaleuca or eventually decide on joining, then I want to wish you the very best and hope you do extremely well with it.
But there is going to come a time where run out of people to talk to.
There also might be that time where you don’t want to bother your friends and family.
If you want to find people that already want to make a living from home to share your business opportunity with the I would suggest checking out The link On This Page, it will help you find more people for your business!
What I am sharing below will NOT be in competition with any MLM company, and provides all the tools and training for you to start generating traffic, leads and sales for your Melaleuca business.
PLUS it will provide an additional income stream which will always be a smart business decision.
That’s it, so if you liked this review about the ins and outs of the Melaleuca pay structure and overall compensation plan structure and complete company overview and would like to help me out, please click on any of the share buttons located on this page to share it with your social networks to help spread the word.
And again, I hope with my Melaleuca review, you now have a better understanding of how the compensation plan structure works and if you decide to join and work it, you can be better prepared to earn more money with Melaleuca.