Who is Selling Melaleuca? – And Can Marketing Wellness Heal Your Finances?

Who is selling Melaleuca?  What is it?  And can I really make money from it?  These are all good questions that I will answer in the following paragraphs.  So if you are looking for a home-based business that can help secure your financial future, then let’s investigate Melaleuca.

The Company and Products

This company began as Melaleuca Oil, selling one wellness product made from the oil of the melaleuca tree, commonly known as tea tree oil.  After running into trouble with exaggerated claims of effectiveness, the business was taken over in 1985 by Frank L. Vandersloot – and everything changed.  Under his leadership the company experienced major growth, a re-focused marketing plan, and created quality products that have the respect of the industry.  Melaleuca Inc., as it is now known, develops, manufactures, and sells over 350 health and wellness products that claim to be more effective, safer, and greener than similar products available in stores.  Company sales reached $859 million in 2007.

The Program and Compensation

Melaleuca is set up as a traditional multi-level marketing program where members are paid commissions on the products they sell and commissions on products sold by their down-line.  For less than $100 you can become not just a customer but a partner (or Marketing Executive as Vandersloot calls them) in the business and begin earning 7% commissions on all of the Melaleuca products you sell.  Distributors also earn 7% on the sales of their down-line – or other distributors that they have recruited – down to seven levels.

Analysis

The answer to who is selling Melaleuca would be stay-at-home moms, people wanting a supplemental income, and customers that want to pass along a product to others that they are passionate about.  There is no doubt that the Melaleuca line is made up of high quality products, and loyal customers rave about the effectiveness of these products as well.  But as a business opportunity the case for Melaleuca is weaker.  One reason for this is the standard MLM practice of requiring the distributors to purchase a monthly amount of product to remain active in the business.  To earn the necessary 35 points, you need to purchase around $80 worth of products each and every month.  This does allow you to receive the 30-40% discount on those products, but the line is generally more costly than similar products you would buy in stores.  Another reason to doubt the program is that the marketing methods are very traditional with a focus on selling to and recruiting family and friends, handing out samples and brochures, and posting flyers to attract customers.  There are approximately 150,000 active Melaleuca distributors – with the vast majority making less than $200 per month.  In order to make any significant income you will need to have hundreds and hundreds of distributors in your down-line who remain active month after month.  So if you love the products and want to make a little extra money each month, and do not mind talking to friends and family about your business opportunity, then Melaleuca might be a good choice.  If you are more interested in making significant income, want to avoid selling to family and friends, and want to find a business that utilizes the global reach of the Internet, I recommend that you look elsewhere.

**Keith Hartung strives to be a servant of God, a committed husband, and a loving dad.  He is also an internet marketer and home business coach, working with people around the world to create financial success in their lives by leveraging the power of the Internet. To see how Keith is making money online enter your information in the form on the right.

Green Mountain Energy: Could This Be the Right Home Business for You?

Green Mountain Energy is a retail electricity provider that has added a traditional network marketing approach to selling their product, called Green Mountain Energy Network.

The Company and Products

Founded in Vermont in 1997, Green Mountain Energy is the leading retail provider of “cleaner” electricity products in the US. Now based in Texas, this company formed to change the way power was made after deregulation of the public utilities in many states. Since electricity generation is the number one form of industrial pollution in the US, Green Mountain Energy is positioned to take advantage of the Green movement going on today. Green Mountain Energy offers electricity 100% generated from new renewable wind resources and sells Residential and Commercial Electricity plus Carbon Offsets (that allow commercial sector clients to improve their environmental position).

The Program and Compensation

Green Mountain Energy Network is a traditional network or Multi-Level Marketing program that pays to seven levels. For a fee of between $329 (plus $25/month) to $999 you can become an independent representative and market the product and the program. The goal is to register yourself, then get ten electricity customers and three business partners (down-line), and then teach your down-line to replicate that to seven levels. The company provides an online back office to help you keep track of your business. Each representative receives a one-time commission on all recruited down-line reps and a very small percentage of all electricity customers’ monthly bills. The company claims that with just three reps and two customers each down to seven levels you can make $10,000 in one-time bonuses and $12,000 per month in residual income from the electricity customers. This amount grows as you add more reps/customers per level.

Analysis

The method for attracting representatives to your down-line is apparently passing a DVD presentation along to your warm market (friends, family, and acquaintances) or getting an independent website that can draw other prospects. The method for attracting electricity customers is talking to that same warm market and using other tactics like trying to recruit customers outside of shopping malls, etc. The reps seem to be on their own once they sign up, with no apparent training from the company — relying instead on the reps to train their own down-line. One downside to the opportunity is that Green Mountain Energy is one of the more expensive options for retail electricity, and you must keep all of your customers through your down-line in order to make the 5-figure residual income per month claimed. Another ironic point that the company reveals is that even if you pay for Green Mountain Energy, the majority of your personal electricity still comes from traditional fossil-fuel production. This is because of the nature of electricity delivery, as all of the capacity produced goes into one bucket (the grid) and is distributed evenly to all customers. While the product that Green Mountain Energy sells is a positive for the environment and would make any rep feel that they were making a difference, I believe that the average person will struggle with this system. The big money makers will be seasoned professionals that can sell to anyone. If you are passionate about the environment or enjoy talking to friends, family, and strangers about changing their electricity or joining you in a business opportunity, this might be right for you. If you believe that you would need more extensive training or a better support system, I suggest you look elsewhere.

**Keith Hartung strives to be a servant of God, a committed husband, and a loving dad.  He is also an internet marketer and home business coach, working with people around the world to create financial success in their lives by leveraging the power of the Internet. To see how Keith is making money online enter your information in the form on the right.