Update by user May 18, 2015
Melaleuca, Inc. Not MLM?
“Multi-level marketing program” means any marketing program in which participants pay money to the program promoter in return for which the participants obtain the right to (1) recruit additional participants, or to have additional participants placed by the promoter or any other person into the program participant’s downline, tree, cooperative, income center, or other similar program grouping; (2) sell goods or services; and (3) receive payment or other compensation; provided that: (a) the payments received by each program participant are derived primarily from retail sales of goods or services, and not from recruiting additional participants nor having additional participants placed into the program participant’s downline, tree, cooperative, income center, or other similar program grouping; and (b) the marketing program has instituted and enforces rules to ensure that it is not a plan in which participants earn profits primarily by the recruiting of additional participants rather than retail sales.”
Essentially, it boils down to whether there’s a recruitment component to a pay plan. If there’s an an opportunity for an override commission from downline productivity, where participants can sponsor other participants and earn income from their sales, it’s a MLM. Using the factors above, and some of the obvious factors referenced in the video, Melaleuca would clearly qualify as a MLM.
There’s an enrollment fee that gives people the right to sponsor other participants (element #1) and the right to sell products (element #2), which gives people the ability to receive payment for product volume (element #3) assuming the commissions are not driven by enrollment fees.
(emphasis mine) “It’s unfortunate that someone would suggest that Melaleuca is something like Amway. It’s not. We started Melaleuca 26 years ago to market environmentally responsible products and to provide a business opportunity for folks who weren’t successful in climbing the corporate ladder and didn’t inherit wealth from their parents. We try to be champions of the little guy.
My father was a little guy. And I still see myself as a little guy. Contrary to those who do not know us, our business model is nothing like Amway or Herbalife. I challenge anyone to find any similarity whatsoever.
There is no investment of any kind unless you want to call a $29 membership fee an “investment.” And anyone can get a refund on that by just asking. We do offer a home-based business opportunity. But it is no “pyramid scheme.” We have long been critical of the many MLM/pyramid schemes operating in this country. I agree with those who say that typical MLM companies destroy people’s finances.
Most are designed to attract people to “invest” in large purchases with the promise of “getting rich” quickly by getting others to invest. The guy at the top always wins and the guy on the bottom always loses. In Melaleuca’s case there is no investment and no getting others to invest. We do pay commissions to those who have referred customers based on what those customers purchase.
There is really no way to lose money on referring customers. And there’s no way for customers to lose either when they’re buying high-quality products at grocery store prices. Customers just order the products they use every month directly from the factory. We have hundreds of thousands of customers who buy from us each month.
They don’t ever resell anything. They don’t invest in any inventory. There can be no pyramiding without some kind of investment. In 26 years, no one has ever complained that they lost money.
It’s simply not possible. Our business model works pretty well for most folks. We have already paid over $2.9 billion in commissions to households across the country. Our mission is to enhance lives by helping people reach their goals regardless of their beliefs, backgrounds, or affiliations.
Last month we sent out almost 200,000 checks to American households alone.
Members of those households tell us we are doing a pretty good job achieving that mission.” source Kevin Thompson, MLM Attorney...http://thompsonburton.com/mlmattorney/2012/03/05/vandersloot-denies-melaleuca-operating-a-mlm/ Consumer Protection Matter. ~KK And, google Melaleuca lawsuits before you enroll your mother and/or brother.
Update by user Apr 30, 2015
Melaleuca CEO Frank VanderSloot Denies to Lead a MLM Company -
" It is my belief, "Frank VanderSloot's Melaleuca inc., is a illegal pyramid scheme. I'm calling on our federal government for unbiased judicial review and protections, ' Summary of penalties sanctions and terminations actions as well as new consumer protection laws.
"Be mindful and careful on who you're pitching what."~KK
Here's what Melaleuca is AS I SEE IT!
If participants must recruit and buy products to be successful, or if the pay plan’s primary rewards are for building a downline, it should be considered a recruitment-driven MLM, and hence an illegal pyramid scheme. √≡ Melaleuca “NoRecruitNoPay™
√Recruitment-driven MLM – an MLM with a compensation plan that rewards primarily distributors who recruit huge downlines, and is therefore a product-based pyramid scheme. Updates blogged here ~>https://kenklocke.wordpress.com/ My motivation? (1)Consumer Protection.
(2) Common law. (3)Constitutional law. (4) A Reckoning.
firstname.lastname@example.org "confidential" #NoRecruitNoPay™ #FearNoMore™ "The Billion Dollar Question Remains? How Do They Get Away With It?" ~KK #ObamaAdministrationCabinet KK© 2015 All Rights Reserved
Update by user Apr 27, 2015
I coined “Melaleuca’s” compensation scheme –
(RBI™) Recruiting Based Income. (RBIs™) only pay for recruiting and/or helping recruit.
Only with recruiting can you potentially be paid on your MLM group. “Limited pay on personals, caps apply w/o pandering/recruiting. “Sick huh?
Hence [NoRecruitNoPay™] Keep in mind my business was a $2’000’000 + annual business…and, I’m sure it still is!
Now, what a (RBI™) plan pays you w/o recruiting is your-
(TRI™)True Residual Income.
In other words, remove the “(RF) recruiting factor.” And your true-residual will reveal itself. (Your TRI™ is bankable income..
after, cost of doing business, fees, penalties, take-aways, required monthly purchases, and other bogus charges.) I coined Melaleuca’s pay scheme (RBI™), because A third grader can understand it… And, thats what it is! *Keep in mind if your recruits drop out in the first “90 days” Melaleuca takes your (RPs) Recruiting Points – away for that customer! “Shameless-Sham?.” Indeed Sir! (wc-c) *Now, allow me to exemplify these (my) acronyms in a real case scenario.
I will use my very own Melaleuca, Inc. “Commission Report Summaries” to clear things up. If you look closely at the (CRS) you can see my available commission was $7’124.13…you would expect that to be my residual income right? Wrong – because I did not pander/ recruit… 3-6 new recruits per month, average of 45 recruiting points 3 months running, I earned “0” commissions on my group!
“0” “Zero!” Nothing! And trust me… People at Melaleuca DON’T talk about this… “dirty little secret” O’ no, O’ no contraire! I think it’s safe to say most recruits and low level folks have no clue! Shake your head?
go for it! “Most people’s first response is “How do they get away with it?” Very Good Question? This is where the (NoRecruitNoPay™) was coined by me. We clear?
Now, it should be abundantly, and painfully-obvious how I coined (TRI™) So, clearly -Melaleuca has a (RBI™) scheme.
Paying only a small fraction of the residual income they build you dreams on (7%) Bottomline_ If you don’t pander to the recruiting demands your “SOL” and they don’t care! So, All you Kool-Aid lovers, … Go Sell Your Dream!” ~KK© (IP) All Rights Reserved ps - google "Frank VanderSloot frivolous lawsuits"
Original review posted by user Apr 15, 2015
Hate to "Burst you mela-bubble." However, as a consumer protection and a matter of truth and ethics "As I See It" I must do what's prudent.
• Melaleuca, Inc. has a -NoRecruitNoPay™ "The Endless Chain Element" and other MAJOR FLAWS as well. Be careful on what you're peddling your friends and family. Read the contract extremely well- if fact take the contract to a lawyer for review.
Google melaleuca lawsuits!
Do you realize if you recruit your own mother in Melaleuca, Inc. And a week later you turn her on to some competing MLM skincare product or coffee you like - it doesn't matter what "it" is...? you could be terminated and lose Everything!
"You go peddle you sweet dreams child. Respectfully. ~KK
PS.. I was on an Executive 5 and on presidents club. The last time Frank- Vandersloot- Breached the IMA's (MY CONTRACT) I never cashed another one of his checks! Vandersloot is the worst bully I have ever met in my life!
I'm calling on (FTC) (DSA) Judicial and Congressional reviews. Justice is coming one way or another. "I personally despise what Melaleuca, Inc. gets away with." KK© 2015 All Rights Reserved.
I pray for federal protections and matter. Have a nice day!
Reason of review: • Melaleuca, Inc. & "The Endless Chain Element".
Preferred solution: FTC/congressional laws passed, sanctions fines penalties. “To be made whole in every way” And be heard as a whistleblower. "Consumer Protection".
I didn't like: Deceptive misleading miserable.