Leadership in Action - US English - 202210

MELALEUCA 2021 ANNUAL INCOME STATISTICS Our entire customer base of more than a million customers have all been referred by someone who loves our products.

Customers

product advocates

9%

The majority ( 81% ) of those who buy Melaleuca products each month are strictly customers. They are not interested in

pursuing the Melaleuca financial opportunity. They do not receive

compensation from the company. They purchase Melaleuca products simply because they want to be healthy and they believe that Melaleuca products will help them with that goal. Having customers who are loyal to our brand simply because they love our products provides the strongest foundation for our business opportunity.

Product Advocates

9% of all Melaleuca customers have referred at least one customer but fewer than eight customers. As those customers purchase products directly from Melaleuca, those who referred them receive a small commission. These households are not necessarily interested in the financial opportunity. Their relationship with Melaleuca is based on their love of Melaleuca products. Their “status” is determined by how many customers they have referred. A Product Advocate has at least one customer. A Product Advocate 2 has referred at least two customers, and a Product Advocate 3 has referred at least four customers. While these individuals may not be considered serious business builders, their customers (like the vast majority of Melaleuca customers) come from word-of-mouth referrals. Therefore, the overall contribution of these individuals is significant.

81% customers

personal customers

time to achieve status

total active customers

annual income

high

low average minimum average minimum average

shortest

longest

4 1 Mo.

372 Mo.

PRODUCT ADVOCATE

$2,323 $14 $111 0 1

1

9 1 Mo.

393 Mo.

PRODUCT ADVOCATE 2

$4,791 $28 $235 2 2

2

18 1 Mo.

357 Mo.

PRODUCT ADVOCATE 3

$5,721 $57 $525 4 5

4

Beginning a Business

business builder

10%

About one out of ten customers ( 10% ) decide to start their own Melaleuca business and eventually achieve Director status, which is considered the first step to becoming a business builder. Directors have made a significant effort (probably spent 50 hours or more) in developing at least eight Melaleuca customers. Those estimated 50 hours could have been spent in a single week or could have been spent over several years. But at some point in their lives, Directors have invested enough time to develop (and maintain) at least eight Melaleuca customers.

personal customers

total active customers

time to achieve status

annual income

high

low average minimum average minimum average

shortest

longest

$31,738 $274 $2,116 8 16 8 72 1 Mo.

361 Mo.

DIRECTOR 1–2 (91.2%)

58 MELALEUCA.COM

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