San Francisco, California
Not resolved

I signed up for $1.00 to become a salesperson for Melaleuca but soon after that I found a full time job and did not think I would have the time to devote to the sales as completely as I needed. I told the representative that signed me up that I was no longer going to pursue this sales position.

What she did not tell me was that unless I contacted the headquarters for Melaleuca that my checking account would be assessed a fee each month. After several months of fees (and overdraft fees) due to my not catching the fees from Maleleuca, I asked my Credit Union to help me get out of this mess.

With my Credit Union persistence, I was able to recover some of the fees from Maleleuca and some of the overdraft fees. I took a long time to get it accomplished but my Credit Union came through for me.

Product or Service Mentioned: Melaleuca Sales Representative.

Reason of review: Problems with payment.

Monetary Loss: $1000.

Preferred solution: Full refund.

Melaleuca Cons: Pressure to sell, Deceptive misleading miserable, The.

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I feel bad that people have been misinformed about the 35 point order. It is actually easy to obtain a 35 point order and since I have been with melaleuca I have saved a lot of money by not going to the big box stores where it is so easy to impulse shop. I simply have slowly been replacing products we use in our home with melaleuca products every month plus every month I get free products.


Melaleuca is simply an on-line Walmart that carries safer and higher quality products for Walmart prices. It isn't possible to "lose money" by shopping at Melaleuca any more than it is possible to "lose money" by shopping at Walmart. A person should only ever purchase what is needed for their family.


Since when did charged a $1.00 signup fee plus a monthly fee on top of that, in order to purchase items from their website. You've made a pretty pathetic analogy using Walmart!


You never heard of Sam's Club? As in - Sam Walmart's paid members' shopping club?


I don't remember signing a legally binding contract for to utlize Walmart's "Falling Prices." where I have to purchase a dollar amoun of products per month.


Even if someone didn't tell you about the monthly product point commitment, it is clearly explained in the very first paragraph of the Terms and Conditions of your Customer Membership Agreement. By signing that contract, you acknowledged that you took the time to carefully read and understand those Terms and Conditions.


Yep, a friend talked me into this, signed me up, but left out the part that I had to order 35 point's worth of stuff each month.


Yes, they are shady that way.


The MLMs sustain their operations by annually churning 60-90% of all participants who quit the schemes and stop purchasing the MLM products after suffering financial losses. The schemes maintain the myth of income opportunity partly by convincing the churned victims that their financial losses were their “own fault” thereby making it possible to replace them with new hopefuls, who are unaware of the loss rates and the flawed and untenable structure.

The companies studied include Arbonne, Cyberwize, Free Life, Herbalife, Melaleuca, Nikken, Nuskin, Reliv, Usana and Your Travel Business (YTB).

All data analyzed were published by the MLMs themselves, though presented in difficult to decipher formats. The analysis organizes the data in a uniform format for each company that is easily understood and compared.

Five of the companies in the study are publicly traded on stock exchanges – Herbalife(HLF), Nuskin(NUS), Reliv(RELV), Usana(USNA) and Your Travel Business (YTBLA.OB). Total market capitalization of these five in June 2008 was $4.25 billion.

The total revenue of the eleven companies exceeds $12 billion. Approximately 9 million consumers worldwide invest in these schemes each year as “sales” representatives though little of the products are ever actually resold to end users.

The newly recruited salespeople become the de facto and unwitting end-users. Their own direct purchases and fee payments represent nearly all the companies’ revenue.

With at least 60% churn rates, at least 6 million new people are enrolled in the schemes each year.

The annual recruitment of these six million consumers is based largely on the companies; false offers of an “income opportunity.” All nine million consumers sign legally binding contracts as independent contractors for the MLM companies, enabling them to participate in the schemes’ “business opportunities.” The contracts authorize them and provide incentives to potentially earn income from selling the companies’ products and from recruiting other sales representatives into the schemes. More here ~> Melaleuca not MLM?


In response to your final question, no, based on your comparison model, Melaleuca is not MLM.

Product Advocates (the "sales people") are not buying garages full of products that they have to sell off or spend the next 80 years trying to use up.

First and foremost, they are individual customers who only need to purchase the products their household needs for the month, just like all of the customers.

What advocates do have is the opportunity, not the obligation, to inform friends, neighbors or complete strangers about the products. If those folks choose to enroll as customers, the advocate receives a small commission for their efforts. The customers, new and old, order their choice of products directly from Melaleuca, not from the advocate who enrolled them.

Yes, it is possible for former MLM sales people to run a Melaleuca business using MLM methods, and I wouldn't be surprised if that is the cause of most of the complaints people make.

However, the recommended method is thru education and suggestion of the best products to meet a person's needs.

I hope that provides some useful information.

I make no excuse for a company that continually works to advance and improve their product line, yet still manages to be successful and profitable. Just seems like quality business to me.



Melaleuca is an MLM. Cheers!


No one can become a Melaleuca Preferred Customer unless they acknowledge that they carefully read and understood Melaleuca's Terms and Conditions. It sounds like you depended on the person who signed you up to tell you what your membership consisted of instead of reading it for yourself.


It's always best to fully read before you sign up for anything and ask questions if you are unsure of terms and obligations to commitments. Its like when you complain about something, know the bottom line!

What wilI make you happy. If its just the rant then that's okay if that's your sole purpose, but if you want something state what it is. That helps to be more in control. Direct sales is not a scam because you may not understand the hierarchy.

Happy reading and don't check that box that indicates you agree and understand. :)


You are correct. It is not hard to become a preferred customer. But it is like Hotel California, You Can Never Leave!

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