Leadership in Action – AUNZ English – 201811

The Strength of our Business Model

A MESSAGE FROM CEO FRANK VANDERSLOOT

As I review the many statistics that come across my desk each month, I am continually impressed by the diligence and hard work of those who are building a Melaleuca business. I am also impressed by how many lives are being enhanced by the concept of “helping people reach their goals.” But I am impressed most of all by the increasing popularity of Melaleuca products and the rapid growth of our customer base. The fact that one in nine of these loyal customers will eventually decide to build a Melaleuca business is also compelling. Seventy-nine percent of Melaleuca customers receive no financial incentive at all! And another 10 percent receive a tiny commission each month because at some point in their lives, they referred a few customers to Melaleuca. It is obvious that their primary objective with Melaleuca is to receive the products—not to work the business or receive any financial reward. This is not to say that these customers do not appreciate their monthly checks (it is much better than what they receive from Safeway or Walmart), but the tiny check that they receive is clearly not their

main incentive for being Melaleuca Preferred Members. The strength of Melaleuca’s business model is that it is based on hundreds of thousands of customers purchasing better products each month at a better value than the grocery store brands. Approximately 11 percent of those who have been introduced to Melaleuca products and have become Melaleuca customers eventually decide to build a Melaleuca business and invest the time and effort necessary to reach Director status. That means they have probably spent 50 hours or more at some point in their lives introducing Melaleuca products and catalogs to prospective customers. (Although some achieve Director in a single day, we estimate that it takes the average person about 50 hours of concentrated effort to become a Director.) One might spend those 50 hours in a single week or over a period of a year or longer. A serious business builder must use time wisely. Certainly one could spend a lot longer than 50 hours on unproductive activities and still not enroll eight customers.

“The strength of Melaleuca’s business model is that it is based on hundreds of thousands of customers purchasing better products each month at a better value than the grocery store brands.”

2 NOVEMBER 2018 | MELALEUCA.COM

www.melaleuca.com

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