is melaleuca a scam

[2020 Updated] Is Melaleuca A SCAM? Hidden Facts Exposed!

Welcome to my Melaleuca review, my friend! Honestly, I’ve been expecting you to visit my website and read my review!

Melaleuca seems to be a well-established company. 

Chances are, you’re here to look for some useful information about the business opportunities provided by the company; or…

You are here to check how good Melaleuca products since they make it sounds so promising and good for health.

No matter what reason that brings you here, I must congratulate you on doing your research before buying into any “seemingly great” product/service.

Honestly, I’m not as smart as you because back in the day, I’m not the kind of person who’ll research before buying into any product or service.

And I’m sure you guess it right, I GOT SCAMMED. For sure, I was upset and get angry on the scammer, but when I took the time to reflect on myself, I think that’s all my fault.

If I can think rationally and do in-depth research on the Forex Mirror Trade MLM Company (The service that I bought into), I might not end up being scammed.

But, if you’re already joined their service. Then, I think you’ll need my honest review of Melaleuca, and consider whether you should continue their service or quit ASAP, and find other trustworthy option.

Without further ado, let’s get started!

Table of Contents

Product Overview

Logo of Melaleuca

Product Name: Melaleuca

What’s It About: Health & Wellness MLM Company

Joining Fees: $29 Start-up cost & $19 annual recurring fee

Owner/Founder: Frank L. Vandersloot


Summary: Melaleuca is a legit MLM company that serves customers with a range of health and wellness products. If you’re decided to become their member and make money by promoting their products, then my review MIGHT disappoint you. I can’t recommend this business opportunity to anyone because of its low earning potential.

Overall SCAM Rating: 20/100 (Safe)

Recommended: Not Really. The earning potential is too low.

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What Is Melaleuca?

Founded by Frank L. Vandersloot in 1985, Melaleuca is considered one of the “heavyweight” in MLM health and wellness industry.

More than 30 years in the business, there’s no doubt to claim that Melaleuca is one of the longest-running MLM companies to date.

They had expanded their business to over 20 countries and cross the 1 billion dollar mark in market value in 2015.

Melaleuca's Product Line

They serve customers with a vast range of products that are eco-friendly or purely natural.

I think this is the Unique Selling Proposition (USP) that makes their company continues to grow bigger and better every year.

But, you might be asking: “A vast range of products? Then how vast is vast?”

Well, after I checked online, I discover they offered over 400 different products in 2018, and I can’t find the updated information about how many products being sold by Melaleuca up to this date (17 April 2020).

The product catalog can be broken down to the following categories:

  • Nutrition
  • Medicine Cabinet
  • Beauty
  • Household
  • Bath & Body
  • Essential Oils
  • And many more…

How To Join Melaleuca And Make Money?

As you might know already, most of the compensation plans of MLM companies out there are sophisticated.

Although Melaleuca’s compensation plan is only 12 pages long, it still takes me about 1~2 hours to understand how it works before I document it into words and present it to you.

For your better understanding, I’ll show you a step-by-step guide of the process from joining Melaleuca to start making money with them.

Step 1: The Joining Fee

In most cases, upfront funding or mandatory fees is always a MUST for you to join any MLM program. Melaleuca’s obviously no different here.

To become their associate, you need to pay a $29 start-up fee, and $19 anuual recurring fee.

Honestly, I think their fee is quite reasonable compared to other health and wellness MLM companies like Purium and Optavia, which required you to you hundreds of joining fees.

Step 2: Earn Commission and Get Paid!

There’re 3 main ways for you to earn commissions and get paid from Melaleuca.

  1. Retail Commission:

This is very straightforward. You’ll earn commission up to 47% when you make sales by promoting the products yourself.

  1. Residual Commission:

This commission payout via their compensation structure, which means you’ll need to build a downline team to qualified for earning this commission.

Here’s how your network looks like:

Unilevel Compensation Structure

If your downlines loyal, you’ll be making a good amount of passive income every month.

  1. Extra Bonus:

You can earn an additional bonus/income when you achieved certain goals set by the company.

For example, they have Advancement Bonus, Mentoring Bonus, Leadership Growth Bonus, etc.

From the information above, we can know there’re 3 factors determine the amount of income you can make with Melaleuca:

  • The number of your downlines. The more you recruit, the more residual commission you’ll earn.
  • The amount each customer purchases each month, including your downlines’ customers.
  • Your leadership skill. If you’re good at building a solid downline team, you’ll be making tons of passive income, as I mentioned earlier.

Overall, these are a brief explanation of the ways you can get paid from Melaleuca. 

If you want to get into more details about their compensation, but you don’t want to overwhelm yourself in reading their complicated pdf file, you can watch the video explanation below.

4 Reasons Why I Don't Recommend Melaleuca

1. Problematic Cancellation Process

It’s easy to sign up for their program, you can probably done it in minutes. 

But when it comes to canceling the subscription, the process MIGHT “rack your brain.”

There’s no way in Melaleuca for you to cancel your membership online. You’ll need to print out the cancellation forms and do some paperwork.

Because of this troublesome cancellation procedure, it brings up the second issue…

2. Too Many Complaints From Customers

If you read the complaints filed by customers on Better Business Bureau (BBB), you can see there’s a big portion of them are related to the cancellation procedure, and refund system.

Here’re some of the screenshots:

Customers' complaint on Melaleuca
Customers' complaint on Melaleuca
Customers' complaint on Melaleuca

Some of the customers are being charged even after they canceled the membership. Therefore, this is a big issue that Melaleuca needs to fix ASAP.

I mean, we’re living in a digital age, I can’t understand why Melaleuca still requires customers to do the paperwork for cancellation, instead of doing it online.

It seems like they are forcing customers into recurring membership.

3. Over Saturated

In my opinion, it’s good for someone to be able to work in a company that has a long history and a solid background.

But when it’s an MLM company, I don’t think it’s a great business opportunity that I can recommend to anyone.

Here’s why: Joining an MLM program and be in the network as earlier as possible is often the critical element for you to succeed in MLM.

According to the FTC report, only 1% of people are able to make money in MLM. And most of them are the TOPPs (Top-Of-Pyramid Promoters) who get involved in the program way earlier than you.

Here’s the screenshot of the report:

FTC states that only 1% of people are actually making money in any MLM program.

That’s why I think the MLM business opportunity provided by Melaleuca is not that promising anymore since they’re already in the industry for more than 30 years. The products they sell are quite saturated, too.

4. Low Earning Potential

As I said in the previous part, Melaleuca’s MLM program is not the best choice because I think it’s over-saturated. Now, I will give you a solid proof to support my claim.

Take a look at the income disclosure from Melaleuca in 2018 below:

2018 Melaleuca's income disclosure

From the data I’ve highlighted for you, you can know that there’s 89.8% of people are only making $2101 yearly, and that’s only around $175/month.

For sure, there’re people making money with Melaleuca. But guess what? Most of them are TOPPs that I’ve mentioned earlier.

Unless you’re very determined and willing to work twice harder (or even more), It’s tough for you to create a full-time income stream with Melaleuca.

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What Do I like About Melaleuca?

Excellent BBB Rating

If you’re familiar with BBB accreditation, you’ll know how hard it is to be rated “A+” by BBB. 

Even though they’ve so many customers’ complaints on BBB, Melaleuca is still rated “A+” by BBB, and I believe they have maintained such an excellent rating for 34 years long since 1987.

Low Start-up Cost

Melaleuca’s $29 start-up cost and $19 annual recurring fee are quite reasonable if compared to other MLM companies which required to pay hundreds of dollars to be their associate.

Numerous Products

Over 400 different products with different categories offered by Melaleuca, and continue to grow every year. You can definitely find one product that meets your needs.

So, Is Melaleuca a SCAM?

Don’t you dare lie to me GIF

Now to one of the most critical questions. Is Melaleuca a SCAM?

After hours of research, I can say that Melaleuca is not a scam nor a pyramid scheme.

It is a legit legitimate MLM company with a solid background, and it has been operating for almost 30 years. And it’s long history big proof that they are doing well in the industry.

They also offer numerous top-notch products, and they’ve laid out every detail of their compensation plan for your reference.

However, I can’t recommend this business opportunity to anyone because of its meager success rate.

Even if I say so, the choice is still yours. There’s no right or wrong answer for you to choose which business you want to get involved.

But it’s better for you if you can do planning and calculation in advance to see if the business is worth your time and money or not.

You Deserve A Better Opportunity

Kudos to you! You’ve just read 1800+ words and still counting. If you make it this far, I commend your commitment.

Meanwhile, I can also feel how serious you’re when it comes to finding a proper way to make money from home.

As you might know, MLM is a flawed business model.

For sure, there’re still people who make a good amount of money with MLM. But it often represents a tiny group of people who joined the program early.

That said, it’s challenging for people who’re BOPs (bottom-of-pyramid) to make some serious dough because they’re running out of people to “recruit”.

MLM Unilevel Compensation Structure

Instead, Affiliate Marketing is my top recommended business model for anyone to make money from home.

The reason is simple…

Advantage 1: No Recruitment Needed

  • You don’t need to “chase” after people and talk them into MLM opportunity where most people lose money.

Advantage 2: Freedom of Choice

  • You can promote any products you love and not be restricted only to promote the products from one MLM company.

Advantage 3: Low Startup Cost

  • Unlike MLM, where you’ll need to pay a pricy introductory fee to join, it takes little to no startup cost to kickstart your entrepreneurial journey in Affiliate Marketing.

You might think I’m biased, but I’m just telling the truths…

If you are sick and tired of MLM and “Biz Opp” Scams, click the “Learn More” button to discover my top recommended learning platform that can help you turn your passion into profits with Affiliate Marketing!

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Zac Phua

Zac Phua

Phua is an internet business enthusiast who loves to talk about online business ideas, affiliate marketing tools, tips, and other sources of income available on the internet. He launched and use it as a resource center where he can share his thoughts and experiences to benefit any newbie who wants to learn more about internet marketing.

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6 thoughts on “[2020 Updated] Is Melaleuca A SCAM? Hidden Facts Exposed!”

  1. Malelueca is like Most MLM’s out there, only those at the TOP of the organisation really make any money. Its basically an option for those who are passionate about their products, make use of their products and have a line up of regular repeat customers they can Create and rely on. For beginners in the 2020 economy and the recent change in the world business outlook, its a no no. Anyone looking to start a new business now with the pandemic sit at home all over the world, must consider an online business just like the author of this review rightly suggests. The future is online and the Best time to plant a tree was yesterday and the next Best time is now. 

    1. Absolutely, online business like blogging and dropshipping might be a better choice for newbies instead of MLM, especially during this economic recession.

  2. Thanks for giving such detail on this company.  A few years ago I had an acquaintance talk to me about the program.  They had only been in the program for a few months  and said they were doing pretty good with it.  I said I would look into, but I was already leery of MLM’s.  Needless to say, I didn’t join.

    I think you did a great job in showing the negative side of MLM’s and that people should really do their own research before joining any MLM.  They are good if you’re good at talking with people.  Most MLM push hard about recruiting so you end up alienating friends and family, which I would hate to do.  Thanks for showing both sides of the program!

    1. It’s my pleasure to hear that my article is able to serve you well,

      Yvette. Indeed, MLM might not the best business opportunity for beginners as there’re too many Scams out there, and it’s really hard to differentiate whether the MLM companies are legit or not.

      Instead, online business like bloggingand dropshipping might be more beginner-friendly.

  3. I know some people who are absolutely hooked on Melaleuca products. I think the products are pretty good, but I was so burned in the past by MLM that I really don’t ever want to do one again! I have dealt with the aggressive uplines who try to convince people to sell the product, too. I’ve tried the gamut and I am so happy to have found a better alternative through Wealthy Affiliate.

     Multi-Level Marketing can make some people a great amount of money, of that I have no doubt, but they are usually the founders of the company and a few people who are excellent sales people!

    With MLM the potential is there, but with the low payouts with groups like Melaleuca, it does not seem like a real way to make a living. But it is a lot of work.

    1. I am sorry to hear that you’ve bad past experience in MLM, Karin. I understand how you feel cuz I’ve been there too.

      Indeed, MLM is not beginner-friendly compared to other online business models like blogging and dropshipping. I hope you can give either one of them a try.

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