FRANK VANDERSLOOT
EXECUTIVE CHAIRMAN
The Strength of Our Business Model
in the beginning you should request help from your enroler in making presentations. You will learn from your enroler as you perfect your presentation skills. Then you will be prepared to help others. As the numbers show, we value and give generous rewards to those who help us find and keep loyal customers. Superior products, reasonable pricing, generous compensation – they all work together to create the most successful business model in the marketplace. Whether you decide to be a loyal customer or a business builder, we appreciate your decision to be a part of Melaleuca! Our endeavor is to introduce superior Melaleuca wellness products to those we care about so they can have longer, more vibrant, and healthier lives. Those who simply use our products will benefit by having a healthier, more vibrant life. And those who refer customers consistently will prosper with repeat income that will bless their lives forever.
of a year or longer. A serious business builder should use time wisely. Certainly, one could spend a lot longer than 50 hours on unproductive activities and still not enrol eight customers. One could argue that a 50-hour investment does not a business make. But achieving Director status with 8 to 10 customers is a good start. Customers are precious to us. We should take care of them. If we do, not only will they remain loyal customers but many will refer other customers as well. The danger in talking numbers or percentages is that someone might make the mistake of thinking that building a Melaleuca business is somehow a game of chance or of beating the odds. This could not be further from the truth. The value of understanding the numbers is only to create a valid explanation of the averages. It’s really not an indication of what you will do. But averages are interesting to consider. Let’s suppose you decide to build a Melaleuca business. As a rule, 81% of your customers will not refer any new customers to your business. But that will not diminish their value. As they continue to buy products each month directly from the company, your commission on their purchases will provide valuable income that you can count on each month. On the other hand, approximately 19% of your customers will eventually refer at least one customer to your Melaleuca business. Many will make a small commission on the customers they introduce to Melaleuca. Sure, they are just “dabbling” and many may not develop the skills to make a good product presentation. Therefore, you will want to help them. In fact,
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 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. Approximately 10% 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 an estimated 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
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 message behind those numbers is quite compelling – and that’s an understatement! They testify of the strength of our product line and the power behind the concept of “exceptional products at reasonable prices.” The fact that there are more than a million Melaleuca households that purchase Melaleuca products every single month for no reason other than the fact that they want the best, most effective natural products in the marketplace sends a resounding message. The fact that one in ten of these loyal customers will eventually decide to build a Melaleuca business is also compelling. In fact, 81% of Melaleuca customers receive no financial incentive at all! And another 9% receive a tiny commission each month because at some point in their lives, they referred a few customers
Sincerely,
@FLVanderSloot
2 JULY / AUGUST / SEPTEMBER | EU.MELALEUCA.COM
JULY / AUGUST / SEPTEMBER | EU.MELALEUCA.COM 3
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