APPENDIX
APPENDIX
MELALEUCA: A DIFFERENT KIND OF COMPANY
MLMs almost always tout a “ground floor opportunity,” implying major advantages if you hurry and get in on the “ground floor.”
Rather than deteriorating over time, a viable business opportunity gets better every year. As products improve through more scientific discoveries each year, it gets easier and easier to outdistance the competition. 7
UNHEALTHY MLM PRACTICES
MLMs often require or encourage “business builders” to “invest” in substantial amounts of inventory each month to qualify for bonuses.
With Melaleuca there is no “investment.” Melaleuca’s customers purchase only what they will use up on a monthly basis.
MLMs often operate a “volume line” that a distributor can use to call the company before midnight on the last day of the month to determine how close the distributor is to reaching a particular “volume” qualification. This incentivizes a distributor to make an even greater “investment” in inventory.
With Melaleuca there is no “investment” to build a business. Melaleuca’s customers purchase only what they will use up on a monthly basis. Since customers purchase directly from the factory, Marketing Executives need to purchase absolutely no inventory. Therefore, this creates absolutely no risk of financial loss for Marketing Executives.
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MLMs often sell products no one really uses—like cases of magical fruit juice, magnets, or green algae—causing increased strains on family budgets.
Melaleuca markets products already used in households on a daily basis—except that Melaleuca’s products are higher quality, more effective, and often safer to use than grocery store or drugstore brands. This means it doesn’t cost anything more to be a Melaleuca customer than it does to shop at a grocery store.
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The retention rate of Melaleuca customers is extremely high. Over ninety-six percent of all customers who ordered last month will order again next month.
The attrition rate of customers and distributors is extremely high in most MLMs.
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MLMs often back up phenomenal product claims with folklore and testimonials rather than science and laboratory studies.
Melaleuca’s products and product claims are backed by science, with scientific studies comparing Melaleuca’s brands with its competitors.
Many MLMs often suggest that people “fake it till they make it” by appearing to be wealthy by driving fancy cars; purchasing expensive homes; buying motor homes, boats, and motorcycles; and by wearing fur coats, diamond rings, and expensive jewelry. This activity has driven thousands of multilevel marketing distributors into bankruptcy, destroyed lives, and even broken homes—all while giving a distorted impression of the company’s actual success. Most MLMs do not have product return policies unless the distributor cancels their distributorship. Only then will a typical MLM honor the Direct Selling Association’s code of ethics, which requires such companies to purchase back 90% of a distributor’s resalable products.
Melaleuca advocates that Marketing Executives keep their full-time job, become the best employee that they can be for their current employer, and use their Melaleuca income to add to their full-time income. Melaleuca counsels Marketing Executives to not consider leaving their full-time job until they are making several times their salary with their Melaleuca business. Melaleuca also advocates for them to stay out of debt, pay off their homes and cars, and live within their means. Melaleuca gives an absolute, no-questions-asked, 100% customer satisfaction guarantee. Melaleuca will give your money back even if you have used up all of a product and decided you didn’t like it after you used it. Grocery stores don’t offer such a guarantee. And MLMs certainly don’t offer such a guarantee.
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MLMs often require their distributors to resell products to their customers.
Melaleuca does not require any of its products to be resold to someone else. In fact, policy prohibits reselling. Everyone purchases directly from the company.
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MLMs usually charge several times what the product is actually worth, such as P1,000 for a product that you would pay less than P250 or more for at the grocery store.
Melaleuca offers “exceptional products at reasonable prices.” That means that Melaleuca’s products are competitively priced with grocery store brands on a per-use basis, even though they are usually substantially higher quality than those brands.
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MLM distributors usually tout big checks to entice others to get involved. Rarely will an MLM reveal what its distributors actually make. Most MLMs will also never reveal their actual annual sales.
Each year, Melaleuca publishes how much all Marketing Executives make at which status, complete with the high, the low, and the average in each status. We’ve been doing it for years! Such a policy would easily expose most MLMs!
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32 WELCOME TO MELALEUCA
SIMPLE STEPS TO SUCCESS 33
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