Melaleuca vs. MLM
Why Melaleuca is a Different Kind of Company!!
Executive Director
Lorraine Debusschere
Why We Look Like MLM
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We do word of mouth advertising
•
We have a work from home business
•
We do presentations
•
We earn commissions based on a Multiple
Referral Organization.
That is where the similarity ENDS !!!
Melaleuca Business Model:
Consumer Direct Marketing
Consumer Driven: Alternate Shopping
Concept – just Switch Stores !!!
Melaleuca is a manufacturing company that
competes for market share with other top
manufacturing companies like:
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•
•
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Proctor & Gamble
Johnson & Johnson
Centrum & One-A-Day
Gatorade, Slim-Fast, Atkins
Clinique, MAC, Lancome, Estee Lauder
MLM Companies:
•
Rely on a few “sensational” products such as juices,
magnets, jewellery, diet cures, wrinkle creams, etc
that people really don’t need. New money required to
purchase.
Melaleuca:
Over 300 necessary products that people need
and use every day – true value and benefits
• No new money spent as we are all buying these
types of items somewhere.
• Real people buying real products they really need
•
MLM Companies:
•
Often require their people to buy large
inventories to start their business – “front
end loading”
•
large quantities of product purchases
required each month to collect bonuses.
Melaleuca :
•
Customers buy what they will consume for
that month. Simply switch stores.
MLM Companies:
•
Most require reselling of inventory for retail
profits.
Melaleuca:
•
No one sells products – no home parties, no
inventory, no delivering, collecting money.
•
All customers do their own shopping either
online or by phone – delivered to their door
•
Pay sales tax on wholesale – not retail
MLM Companies:
• Products are usually priced several times higher than
they are really worth.
• $40. bottle of juice can be purchased at health food
store for $10.
Melaleuca:
• Products are competitively priced and better value
than grocery store brands.
• Show actual price comparisons in our presentation
• Could compete in a store front
MLM Companies:
• Often use celebrities or unfounded gurus with
dubious credentials to “hype” products with little or
no documented independent science.
• False promises – both in product and/or business
Melaleuca:
• Develops and sells products based on sound,
documented science. Developed by strong
Research & Development staff with scientists &
PhD’s from reputable universities.
• Competing with grocery store products.
• Marketed person to person from personal
experience
MLM Companies:
• “First In” wins, “Last In” loses – hype “ground floor”
opportunity with high risk, high inventory & high
prices.
• Those at the top make most of the money.
• Everyone out for themselves.
Melaleuca:
• Proven track record of over 25 yrs, BBB Torch Award.
• Based on sound business principles and our
Compensation Plan rewards those who help others.
• Anyone can succeed - anytime
MLM Companies
• Re-Order rate = Avg. 12-15%
• 200-400% Attrition – not enough value to hold
customers
• 95% are Business Builders
Melaleuca :
• Re-Order rate = 95% From loyal customers who
choose our brand each month – CREATES TRUE
RESIDUAL INCOME.
• 88% are just customers
• 12% are Business Builders
• Build a business to last a lifetime
MLM Companies:
• Often the majority of income for top leaders
is derived from the sale of training materials
sold to “downline” and from motivational
seminars and rallies – NOT from actual
compensation plan.
Melaleuca:
• Protects Marketing Executives by prohibiting
individuals from producing or marketing
their own materials to an organization
MLM Companies:
•Many have “volume lines” or online access to check group
volumes at month end so distributors can order “extra”
products to qualify for bonuses or the next “level” if their
volume is short. “You too can become garage qualified –
add to your already huge inventory”
Melaleuca:
•Does not have a “volume line”
•Commissions paid on actual real product
purchases not people “buying” advancements
What we do:
• “We educate the consumer on the value
of our brand and help them switch
stores for higher quality, better value
products without spending any extra
money or any new money…
• And, we allow our customers to become
business partners and compete for
market share against other major
manufacturers.”
Where do you want to shop???
Do you want to continue buying from the
corporate giants – Walmart, Costco,
Superstore, Safeway, Sam’s Club, etc. ??
Or support the “little guy” and bring more
profits back to your community??