Is Melaleuca A Pyramid Scheme Or Is It Legitimate?

When you hear the name Melaleuca, several questions may pop into your mind: Is Melaleuca a legit MLM company? 

Is it a scam? Or, even worse, is it like a pyramid scheme that is designed specially to rip you off? 

To answer your questions, Melaleuca is a wellness company that manufactures and sells various health and wellness products. This company has been around for the last thirty years, and it is quite popular even today. 

But people who bought Melaleuca health products have reported problems with them. Fortunately, those unsatisfied with the products could easily claim the money-back guarantee facility that the company had promised. 

Due to these instances, people wonder if Melaleuca is a pyramid scheme or a legitimate company. So, if you plan to join Melaleuca, do give this brief Melaleuca review a read.

What Is Melaleuca?

Melaleuca is a wellness company specializing in wellness products, health supplements, nutrients, and food items that help in increasing the nutrition content in our body while reducing weight naturally. It also manufactures home cleaning products that are non-toxic and concentrated.

The company has over 350 products that they sell through distributors. Vendors who buy the products from Melaleuca further sell them to others and get commission. They also get commissions if they recruit more vendors. 

Meaning, in addition to the money they get from selling the products, they get extra when they hire vendors who can increase the supply chain for the company.

How To Earn Money Through Melaleuca?

Melaleuca is an MLM or Multi-Level Marketing Company that follows the same work strategy as others. There are two ways to earn money through Melaleuca:

1. Selling products
2. Recruiting vendors

How Does Melaleuca Work?

For starters, let’s first understand the meaning of the pyramid scheme and why Melaleuca is considered to be one. A pyramid scam is a deceptive and unsustainable investment proposal that promises unreasonable profits on fictitious money. 

The early investors receive those large returns, prompting them to advocate the program to others. And the returns on investments are provided out of the fresh money that comes in. However, the pyramid eventually collapses and you lose money because no fresh investors can be located.

Coming to Melaleuca, it follows a pretty straightforward process- the company manufactures products, and you market and sell them. For every product that you sell or every vendor that you hire, Melaleuca gives you a commission for it. 

However, the commission you get despite marketing and selling the products to the customers is minimal. In fact, the company does not spend much to market itself as the Melaleuca members do it for them.

Products Sold By Melaleuca

Melaleuca sells the following products:

• Essential oils
• Vitamins and supplements
• Skincare products
• Medicines
• Bath and body products
• Cosmetics
• Home fragrances
• Hair care products
• Cleaning and laundry products

Pros Of Melaleuca

1. Established Company

Melaleuca has been in the market since 1985, which is quite impressive. Most MLM companies fail to bloom after one to three years, but Melaleuca has been functioning for the last thirty-five years and still counting.  

2. Positive Product Reviews

Melaleuca still exists today because of its good product quality. Products manufactured by the company get a lot of positive reviews from people worldwide. 

Cons Of Melaleuca

1. A Lot Of Competition Within The Market

Though Melaleuca claims that most of its products are exclusive, there are tons of other products on the market similar to the ones offered by Melaleuca. So, how will you convince a customer to buy your product if you sign up to work for Melaleuca? After all, people trust the brands they have been using for a long time and don’t trust newer ones.

2. Overpriced Products

Just because Melaleuca has been around for a long time and tags certain products as exclusive, it doesn’t mean that people will pay a ridiculous price for them. There are a ton of alternatives available for these “exclusive” Melaleuca products that are available at a much lower price. 

Most people try to stick to their budget and look at the price tag before buying anything. 

3. Forcing You To Buy More Products

If you work for Melaleuca, the company will force you to buy more and more items so that your status remains active. This feature is a massive drawback because vendors are tempted to buy the products even when they know that they won’t be able to sell them. 

Melaleuca Compensation Plan

Following is Melaleuca’s Compensation Plan for your reference:

• 20/20 bonus if you manage to recruit 20 members in five months
• Commissions for your referrals
• Monthly car bonus only for those in certain ranks
• Advancement bonus for ranking up
• Leadership growth bonus once you climb the ranks
• Pacesetter bonus for ranking up in a fixed time frame
• Double core mentoring bonus when your downline climbs the ranks
• Mentoring bonus when your downline climbs the ranks
• Core mentoring bonus when your downline climbs the ranks

Final Verdict: Is Melaleuca A Pyramid Scheme Or Is It Legitimate?

Melaleuca is an A+-rated company from the Better Business Bureau. The company has been accredited for its products and performance quite a few times. But like all other multi-level marketing companies, it too, has consumer complaints. The Melaleuca team, however, handles these complaints decently well. 

It has a relatively low order requirement and a minimal start-up fee. Some people might feel that it is based on pyramid schemes, but this is an attribute of an MLM company. 

Moreover, Melaleuca sells high high-quality products, and these same products form an integral part of the company. Most of the products are sold using online business plans, and a lot of stress is put on making them environmentally-friendly. These points signify that Melaleuca is a legitimate MLM company, not a pyramid scheme.