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Delivering wellness
 

Delivering wellness

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    Delivering wellness Delivering wellness Presentation Transcript

    • DELIVERINGW ellnes S an introduction to
    • What We Will Discuss Today The Wellness Company • Proven Track Record • Debt-Free • Strong Management Exceptional Products That: • People Use Every Day • Are Safer for Your Home and Environment • Are a Better Value Than Grocery Store Brands Revenue Sharing at Melaleuca • No New Money—Simply Switch Stores • High Customer Reorder Rate • No Risk 1
    • Melaleuca’s Heritage Our Mission: To Enhance the Lives of Those We Touch by Helping People Reach Their Goals SM Since its beginning in 1985, CEO Frank L. VanderSloot’s passion for helping the average family has been the driving force behind Melaleuca’s mission. 2
    • Melaleuca:TheWellness Company ® What’s Most el lness Fin an cia Important lW lW a sic el Living a Getting Out to You? Phy lne Longer, of Debt and Healthier, More Securing Your ss Vibrant Life Financial Future Achieving Balance, Making Your Happiness, and Home and the Pe r s Peace of Mind Environment e ss in Your Personal a Cleaner, on ln and Family Life Safer Place al el W W ll l ta e ne ss n n me e n vi r o 3
    • Melaleuca: A Different Kind of Company ® TRADITIONAL BUSINESS MODEL CONSUMER DIRECT MARKETING — MELALEUCA’S PARTNERSHIP MODEL T TO THE CUST EC OM Manufacturers IR Each entity D ER Procter & Gamble Colgate-Palmolive takes a Johnson & Johnson portion of the Melaleuca revenues Manufactures Retail CustomerAdvertisers Distribution and TV Ships Direct Wal-Mart Radio Safeway Print Media Kroger OR W AL S DO F MO RR UTH REFE The customer is Customer The Result? outside of the • HIGHER QUALITY PRODUCTS partnership • SAVINGS AND BETTER VALUE • REVENUE SHARING 4
    • $950,000,000Melaleuca’s $900,000,000Growth Record $850,000,000 $800,000,000 $750,000,000 $700,000,000• Since 1985 annual sales have grown to over $650,000,000 $948 million. $600,000,000 $550,000,000• Melaleuca is debt–free with a 26-year proven track $500,000,000 record of success! $450,000,000• Each month over 800,000 households $400,000,000 shop with Melaleuca—a testament $350,000,000 to the quality and value of $300,000,000 Melaleuca’s products. $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $0 ’85 ’86 ’87 ’88 ’89 ’90 ’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 5
    • Melaleuca’s SuccessMelaleuca is a recipient ofthe esteemed Better BusinessBureau Torch Award, grantedonly to select companiesthat prove a long history ofexemplary business practices.To see the numerous otherawards Melaleuca hasreceived over the years, go Melaleuca appeared on Inc. magazine’sto MelaleucaAwards.com. list of fastest-growing companies for five consecutive years and earned a place in the prestigious Inc. 500 Hall of Fame. 6
    • The Revenue Sharing ConceptWe refer customers to shop with Melaleuca.• Customers shop direct by phone or online at Melaleuca.com. • Approximately 95% of customers who shop this month will shop again next month.• Each time they shop, the person who referred them earns a commission.• The result? We share in the revenue and earn ongoing commissions creating reliable residual income. Melaleuca has paid over $2.8 billion in referral commissions to families just like yours. 7
    • Simply Switch Stores! • No New Dollars Required • Reduce Your Monthly BudgetSimply switch some of your shopping to Melaleuca, where you’ll find better, safer products. 8
    • Welcome to a Simpler Way of Shopping— Over 350 Exclusive Products You Use Every Day ® 9
    • ® Safer for your home EcoSense: The Safety You Want, the Cleaning Power You Need SAFER SAFER SAFER FOR YOUR FAMILY FOR YOUR HOME FOR THE EARTH•  o chlorine bleach N •  ffective, naturally E • Super-concentrated•  o ammonia N derived ingredients •  o fillers N•  o formaldehyde N  •  o abrasives N  •  o phosphates N•  o safety caps required N  •  H-balanced (non-alkaline) p 10
    • EPA-Approved toKill 99.9% of Germswith the Natural Powerof the Herb Thyme Sol-U-Guard Botanical® Disinfectant •  ills household germs like staph, E. coli, and the H1N1 virus K • Kills germs on kitchen, bathroom and other surfaces •  o chlorine bleach, ammonia, harsh fumes, or harmful residue N •  entle enough to use around children, pets, and food G •  vailable only at Melaleuca A 2x concentrated to save you money 11
    • Concentrated Means Less Waste and More Savings 6X CONCENTRATED MelaPower® 6x = 3 Bottles of 2X Ultra Tide® 96 loads 96 loads total $16.99 PREFERRED CUSTOMER VS $26.97* COMPETITOR PRICE * ompetitor product price from C Albertsons.com and Safeway.com, Las Vegas, NV, June 8, 2011. Prices may vary. Product names are trademarks of their respective owners. Compare and Save = = Clear Power® 3 Bottles of Windex® Tub & Tile™ 3 Bottles of Tilex® Makes 96 fl. oz. 96 fl. oz. total Makes 96 fl. oz. 96 fl. oz. total $5.69 VS $14.36* $5.69 VS $14.97* PREFERRED CUSTOMER COMPETITOR PRICE PREFERRED CUSTOMER COMPETITOR PRICE 12
    • Melaleuca Is the Market Leader in Concentrated Products We’ve saved: • 145.9 million pounds of plastic in our landfills • 27 million gallons of fuel for shipping • 31.1 million pounds of harmful gas emissions Melaleuca has been green since 1985, long before being green was popular! 13
    • Want More Energyand Better Health? The Answer: Oligo ! ™ FIRST-IN-THE-WORLD DISCOVERY Oligo Technology: Superior mineral absorption and maximum antioxidant protection delivered Just Like Nature™ Just Like Nature™, Oligo prebinds minerals to organic proteins and fibers to mirror how they exist in fruits, vegetables, and other whole foods. If after 90 days you don’t The Proven Result: feel a marked difference No other mineral form is more in your health and energy, we’ll refund your money absorbable than Melaleuca’s Oligo.* —no questions asked. *Based on percent solubility of copper, iron, manganese, and zinc at intestinal conditions. 14
    • Do You Think Your Body Is Getting 100% of the Vitamins and Minerals Shown on the Label? Labels don’t indicate the rate of solubility or absorption. For example, to have the same amount of vitamin C or copper available for absorption, you’d have to take… at least at least 1 Vitality Pack or ® 33 Centrum ® or 15 One A Day®* Daily Dose PROVEN BY SCIENCE: Minerals in the Vitality Pack powered by Oligo™ are proven to give you up to: • Four times more mineral absorption • Five times the protection of critical antioxidant vitamins • Ten times more solubility*Comparison vs. One A Day Women’s and Centrum for Women. *Based on percent solubility of copper, iron, manganese, and zinc at intestinal conditions. 15
    • Specialized Daily Packs to Meet Your Nutritional Needs1—Vitality Multivitamin & Mineral™ 1—Vitality Multivitamin & Mineral™ 1—Vitality 5—Phytomega®2—Vitality Calcium Complete™ 2—Vitality Calcium Complete™ Multivitamin 6—ProvexCV® & Mineral™3—CellWise® 3—CellWise® 7—NutraView® 2—Vitality Calcium 4—Florify® 4—Florify® Complete™ 8—Replenex® 5—Phytomega® 3—CellWise® 9—EstrAval® 6—ProvexCV® 4—Florify® 16
    • The World’s Leader in Natural Heart platelet FunctionHealth Solutions cholesterol LDL oxidation triglyceride levels endothelial function bloodFact: Cardiovascular health is the #1 health concern in North America. pressure ProvexCV® FiberWise™ Phytomega® Reduces LDL oxidation and Naturally helps to lower LDL Helps reduce LDL promotes healthy blood cholesterol, maintain healthy cholesterol and promotes pressure, platelet activity, triglyceride levels, and support a healthy digestive tract* and endothelial function* proper heart function* * hese statements have not been evaluated by the Food & Drug Administration. T This product is not intended to diagnose, treat, cure, or prevent any disease. 17
    • Exercise and Weight Facts: Loss Products • 8% of women and 6 72% of men are overweight That Work! • egular exercise reduces R the risk of heart disease, diabetes, and osteoporosis Sustain® Sport Attain® ProFlex20® Replenex® Provides hydration and Reduces cravings to support 20 grams of fast- Maintains healthy cartilage, endurance with twice the healthy weight loss efforts absorbing proteins with promotes elasticity, and electrolytes and fewer with natural CraveBlocker,® the essential amino acids eases joint discomfort with calories than Original not found in SlimFast® your muscles need our patent-pending Gatorade® drinks or other brands A.I. Blend** hese statements have not been evaluated by the Food & Drug Administration. T This product is not intended to diagnose, treat, cure, or prevent any disease. 18
    • FIRST-IN-THE-WORLD DISCOVERY The ACCESS Bar ® Turns Fat Into Fuel!•  CCESS your stored body fat A• ncrease endurance with less fatigue I and soreness•  atented power of natural, clinically P proven CLA*: - Helps reduce body fat by up to 10% - Improves muscle tone and lean muscle - Prevents weight regain**When 3 grams of pure CLA are consumed daily for several weeks. Access contains 1.5 grams of pure CLA per serving. 19
    • Better Value Compared to Drugstore Brands Save vs. Major Brands* VS. $10.39 $24.39* PREFERRED CUSTOMER COMPETITOR PRICE Natural Dental Care Featuring pure T40-C3® Melaleuca Oil Skin Protection Advanced dry skin, acne, and sun care Complete First Aid Antiseptic and herbal ingredients naturally soothe and help speed healing Melaleuca Oil is well-known for its soothing, penetrating, and antiseptic * ompetitor product price from Safeway.com, Portland, OR as of May 21, 2011. C healing properties 20 Prices may vary. Product names are trademarks of their respective owners.
    • Do You or Someone Clinically proven to w ork faster, better, and last longer than Eucerin ! You Know Suffer from ® Severely Dry Skin? RENEW™ 7x as effective vs. Eucerin onassociated with: moisture retentionEczema Psoriasis Rosacea Climate EUCERIN ® MOISTURE RETENTION *Clinical study wit h dry skin from ec zema Proven to leave dry skin feeling softer, smoother, and healthier- looking in just 24 hours.* 21
    • Better Value Compared to Grocery Store Brands Silky Soft Skin from Head to Toe Products No Family Should Be Without Affinia™ Shampoo and Conditioner • Sulfate-free Exclusively for Men • Safe for color-treated hair •  elivers soft, shiny, manageable hair DCOMPARE AND SAVE Products for Strong, Melaleuca Affinia Shampoo 12.0 fl. oz $4.99 Healthy Kids ® L’Oreal EverPure™ Shampoo 8.5 fl. oz $6.99 ® Paul Mitchell Original Shampoo 10.2 fl. oz $13.49 * ompetitor product price from Drugstore.com, True Color Hair Design, Seattle, WA as of June 8, 2011. C Prices may vary. Product names are trademarks of their respective owners. 22
    • Skin Care, Cosmetics and Hair CareNaturally effective and clinically proven to enhance your true beauty. HAIR CARE SKIN CARE & CO * ompetitor product price from EsteeLauder.com as of May 30, 2011. C SMETICS Prices may vary. Product names are trademarks of their respective owners. Sei Bella Estée Lauder Skin-Revitalizing Perfectionist Wrinkle Serum Lifting Serum Skin moisturizers for softer skin YES YES Advanced tetrapeptides for youthful-looking skin YES NO vs Leading retinol technology to reduce fine lines and wrinkles Shea extract, antioxidants, and vitamins A and E YES NO YES NO to tone and nourish skin Price $29 $55 23
    • Products You Use Every DayAcid Reducer Crackers Fabric Softener First Aid Kit Herbal Teas Liquid Hand Soap Omega-3 PillAcne Treatment Dental Floss Face Powder Flavored Drink Immune Complex Makeup Pain RelieverAfter Shave lotion Deodorant Facial Cleanser Foot Lotion Joint Supplement Makeup Remover PerfumeAfter Sun Gel Dishwashing Facial Crème Foundation Primer Laundry Brightener Mascara Pet ShampooAllergy Medicine Detergent Facial Moisturizer Fragrance Sprays Laundry Detergent Melaleuca Oil Powder BlushAll-Purpose Cleaner Powder BronzerAntibacterial Powder Foundation Liquid Soap Prenatal Omega-3Antibiotic Ointment Prenatal VitaminsAntifungal Cream ProbioticAnti-Itch Cream Prostate SupportAntioxidants Protein ShakesAntiperspirant Rehydration DrinkBath Bars Sanitizing WipesBath Oil ShampoosBathroom Cleaner Shave GelBody Lotion Shave LotionBody Wash SpongeBreath Spray Sleep AidCalcium Stain RemoverCandles Sugarless GumCereal SunscreenCereal Bars Tooth GelCleaning Wipes Disinfectant Facial Scrub Furniture Polish Lip Balms Cologne Tooth PolishCold Medicine Dog Treats Toner Glass Cleaner Lip Colors Meal Replacement ToothbrushesCompacts Energy Drink Feminine Douche Gum Lip Gloss Mineral Foundation Urinary Tract SupportConditioners Eye Serum Fever Reducer Hand Creme Lip Pencil Mouth Rinse Vision SupportCookies Eye Shadow Fiber Bars Hand Sanitizing Gel Lip Plump Multivitamin Weight ManagementCough Drops Eyelash Primer Fiber Cereal Heart Health Support Lip Treatment & Mineral ShakesCough Syrup Eyeliner Fiber Drink Heavy-Duty Cleaner Liquid Foundation Muscle Pain Cream Wrinkle Relaxer 24
    • The Value of Preferred Customers redirect Preferred Customer about $50 to $60 of their monthly shopping to Melaleuca and receive Membership 30% to 40% off the regular price. There’s no comparison…quality you won’t find at the grocery store!Preferred Customers get: LOWER PRICES BETTER PRODUCTS LOWER COST PER USE PRODUCT REGULAR PRICE Preferred PRODUCT YOU GET: PRODUCT COST PER USE Customer PRICE FiberWise : ® • 12 grams of fiber Affinia ™ • 7 fiber sources 7 $ .50 4 $ .99 MelaPower 18¢ ® Shampoo • Vitamins A,C and E Sulfate-Free • Soothing herbs, botanicals and probiotics Metamucil : ® • 3 grams of fiber • Only one source of fiber Paul Mitchell ® $ 13 .49* — • No vitamins 2X Ultra Tide ® 28¢* • No probiotics* ompetitor product price from Albertsons.com, Las Vegas, NV, and True Color Hair Design, Seattle, WA as of June 8, 2011. C Prices may vary. Product names are trademarks of their respective owners. 25
    • Preferred Customers $ 20 MONTH Get $100 in $ 20 2 FREE Products MONTH 3 $ 20 MONTH 4 $ 20 Loyalty Shopping Dollars MONTH 5 We’re so confident you’ll love $ 20 our products, we give you MONTH $100 in free products during 6 your first 6 months of shopping. Every month thereafter, you can earn 10% back in Loyalty Shopping Dollars each time you shop.See Melaleuca Customer Agreement for more details. 26
    • Do You As a Preferred Customer you get exclusive discounts, rebatesShop at Any of These and money-saving coupons at major online retailers. Online Retailers? With your Preferred Customer membership, save up to 15% at these and over 600 other online retailers Also save on everyday .COM services like: • Home Security • Identity Theft Protection • Prescription Drugs • Health Care Services • Credit Card • Cell Phone Service 24 27
    • Preferred Customer MembershipWith Your Monthly To Set Up Your Shopping Account:Loyalty You’ll Get: 1  . Become a Preferred Customer–$29 membership fee 2. Simply Switch Stores and Shop with Melaleuca Each Month • Safer products Purchase at least 35 Product Points each month—about $50 to $60 redirected from the grocery store • Better health 3  . Preselect Your Backup Order • Cleaner environment • Better value If you forget to shop during the month, we’ll send your • 30%–40% discount preselected order, conveniently charge your account, and protect your membership discounts and benefits. • $100 in free product • 10% in Loyalty Shopping Dollars About Product Points • Savings on everyday services •  xample: Renew™ Lotion E $9.99, 7 Product Points • No risk—you can cancel •  ere is an example of H your membership at any time 35 Product Points: 100% satisfaction guaranteed See Melaleuca Customer Agreement for more details. 28
    • What amount of extra income would make a difference? • To bridge the gap in household expenses • To get out of debt • To stay home with children • To secure retirement, a “plan B” for your future • Time freedom to enjoy life on your own terms 29
    • When You Partner with Melaleuca You: NO Large Investment NO  Carrying Inventory1. Team up with: NO  Taking Orders and • The world’s leader in wellness and safer for your Making Deliveries home products NO  Billing and Collections • A company with no debt and a proven track record NO  Pressuring Customers • A support team to help you every step of the way to Purchase2. Compete for market share with major brands like NO  Repeat Sales Presentations Tide®, Cascade®, Centrum®, Colgate®, Gatorade®, and Clinique® NO Risk Simply Switch Stores and Save3. Earn ongoing, reliable residual income • Consumable products customers want, need and use • Easy monthly shopping with over 350 products • Preferred Customer benefits build monthly loyalty • True repeat monthly business Melaleuca Distribution Center, Idaho Falls, ID 30
    • Anyone Can Build a Prosperous Melaleuca Business You Can Earn Residual Income in Two Ways: 1 Personally refer customers to shop with Melaleuca and 2 help others do the same Earn 7% to 20% of Product Points Earn 7% of Product Points each time customers you each time customers in your organization refer shop at Melaleuca who are referred by others shop at MelaleucaSee Melaleuca Compensation Plan for more details. 31
    • The Key to Melaleuca’s Compensation Plan1. Personally Refer Customers2. Develop Directors A Director is someone who has personally referred eight or more customers 32
    • Advancing to Director and Director II Average earnings in month Average Personal of advancement ongoing Status Customers monthly Pacesetter* Non-Pacesetter* earnings Refer 8 Customers Who Shop During the MonthDirector 8 OR MORE $435 $278 $168 CUSTOMERS Average earnings of those who reach Director in their first month: $614 Personally Refer 2 More Customers and, With the Help of Others, Add 10 More Customers to Your BusinessDirector II 10 OR MORE $907 $482 $328 CUSTOMERS*Includes Pacesetter or Advancement Bonus paid over 3 months at Director II and above.Based on Melaleuca Compensation Plan and 2010 Annual Income Statistics. 33
    • Become a Director III and Above Help Personal Enrollees Become Directors Average earnings in month Average Personal of advancement ongoing Status Directors monthly Pacesetter* Non-Pacesetter* earnings Director III 1 DIRECTOR $1,644 $898 $576 Director IV/V 2 DIRECTORS $3,052 $1,477 $996 Director VI/VII 3 DIRECTORS $4,740 $2,484 $1,617 Director VIII/IX 4 DIRECTORS $7,034 $3,667 $2,371*Includes Pacesetter or Advancement Bonus paid over 3 months at Director II and above.Based on Melaleuca Compensation Plan and 2010 Annual Income Statistics. 34
    • Residual Income to Last a Lifetime PERSONAL POTENTIAL ADVANCEMENT AVERAGE Status: MONTHLY BONUS DIRECTORS BONUSES (One-Time or Pacesetter) ANNUAL INCOME BONUS POOL TYPICALLY Senior Director Through Senior 5 DIRECTORS $10,000 CAR BONUS $2,000 TO $60,187 $5,015 Director IX $400 $10,000 Per Month BONUS POOL TYPICALLY Executive Director Through Executive 10 DIRECTORS $20,000 CAR BONUS $10,000 TO $158,949 $13,246 Director IX $1,000 $20,000 Per Month TYPICALLY BONUS POOL Corporate $50,000 TO Director Through Corporate 5 EXECUTIVE DIRECTORS $20,000 CAR BONUS $100,000 PLUS A ONE-TIME $1,286,556 $107,213 Per Month ADVANCEMENT BONUS Director IX $1,000 $100,000 35Refer to Melaleuca Compensation Plan and 2010 Annual Income Statistics for details.
    • In Which Category Do You See Yourself? CATEGORY 1 CATEGORY 2 CATEGORY 3 PART-TIME SIGNIFICANTPREFERRED CUSTOMER REFERRAL BUSINESS REFERRAL BUSINESS Shop and Save Invest 5–15 Hours a Put In a Serious Effort— 30%–40% Week 20+ Hours Each WeekSave time and money, and Begin today and earn up to Earn up to $3,000–$20,000get $100 in FREE Products. $500–$3,000 each month*, or even more each month* Refer a friend from time to depending on your time by teaming up and getting time if you would like. and consistent effort. started right away. 3 Simple Steps to Get Started Set up your account and enroll STEP 1: as a Preferred Customer STEP 2: Preselect your Backup Order STEP 3: Shop for your first product order *  otential earnings may vary. Based on Melaleuca Compensation Plan and 2010 Annual Income Statistics. P 36
    • 1 ce en Getting Started the Right WayferRe Getting Started STATUS MONTHS Senior Director 11–12 $4,000 $2,000 Purchase a Pacesetter Pack $2,000 Director IX 10 with a Value or Career Pack $1,000 $1,600 Qualify for Pacesetter Bonuses Director VIII 9 $800 Schedule and hold a follow-up $1,400 Director VII 8 $700 session with your enroller within 48 hours $1,200 Director VI 7 $600 Review the materials in your $1,000 Director V 6 Membership Kit $500 $800 Director IV 5 Listen to the Getting Started CD $400 $600 Write down your questions Director III 4 $300 Start your contact list $400 Director II 3 $200 Schedule action $200 Director 1-2 $100 $6,600 $13,200 Based on Melaleuca Compensation Plan and 2010 Annual Income One-time Pacesetter Advancement Advancement Statistics. Pacesetter and Advancement Bonuses paid over 3 months at Director II and above. Bonus Total Bonus Total 37
    • 2 Value Pack ce With Pacesetter Pack enferRe Includes: • 10 Membership Kits $29 each • 5 Getting Started CD Sets FREE • 1 Renew™ Referral Pack FREE Save 34% off the Preferred Customer price $199 • 100 Personalized (Regular Price: $310) Business Cards FREE 38
    • 3 Career Pack ce With Pacesetter Pack enferRe Includes: • 10 Membership Kits $29 each • 5 Getting Started CD Sets FREE • 1 Renew™ Referral Pack FREE Save 30% off the Preferred Customer price • 100 Personalized $299 (Regular Price: $431) Business Cards FREE 39
    • 4 en ce Revenue Sharing and Referring CustomersferRe As Customers are placed in your organization, you share in the revenue REFER 4 REFER 8 OR MORE from those Customers’ purchases in REFER 2 CUSTOMERS CUSTOMERS CUSTOMERS AND EARN 2 Referral Generations AND EARN ON AND EARN ON 3 GENERATIONS 4 GENERATIONS ON 7 GENERATIONS 1 2 3 4 5 6 7 125 625 3,125 15,625 78,125 CUSTOMERS CUSTOMERS CUSTOMERS CUSTOMERS CUSTOMERS Earn 7% on monthly pu rchases in your organization Earn up to 20% on your Customers’ purchases personal Personal YOU Customers Earn Marketing 1–7 7% Executive 8–19 14% 20+ 20% For illustration purposes only. Refer to 5 25 Melaleuca Compensation Plan for details. 40
    • 5 ce 2010 Annual Income Statistics enferRe Customers The majority (61% ) of those who buy Melaleuca products each month are strictly customers. They are not interested in pursuing the Melaleuca ­ financial opportunity. They just love Melaleuca products. Only a few of them will ever decide to build a Melaleuca business. Customer Referrals Status 27% of all Melaleuca customers have referred at least one customer but fewer than eight customers. As those customers purchase products directly from Melaleuca, those who referred them receive a small commission. These households are not necessarily interested in the financial opportunity. Their relationship with Melaleuca is primarily because they love Melaleuca products. Their “status” is determined by how many customers they have referred. A Marketing Executive has at least one customer. A Marketing Executive II has referred at least two customers and a Marketing Executive III has referred at least four customers at some time in their life. While these individuals may not be considered serious business builders, their customers (like the vast majority of Melaleuca customers) come from word-of-mouth referrals. Therefore, the overall contribution of these individuals is significant. Status Percent Annual Income Minimum Average Minimum Average Time to Achieve Status1 at This Personal Personal Total Total Status Customers Customers Active Active Shortest Longest Average High Low Average Customers Customers Time Time Time Mkt. Exec. 74.1% $2,164 $24 $85 0 1 0 4 1 Mo. 120 Mo. 3 Mo. Mkt. Exec. II 15.4% $2,352 $24 $216 2 2 2 10 1 Mo. 120 Mo. 6 Mo. Mkt. Exec. III 10.5% $5,225 $61 $549 4 5 4 21 1 Mo. 120 Mo. 6 Mo. Developmental Status Only 1 out of 9 customers ( 12% ) will decide to start their own Melaleuca business and eventually achieve Director status or above. Directors have made a substantial effort (probably spent at least 50 hours) in developing at least eight Melaleuca customers. Those estimated 50 hours could have been spent in a single week or could have been spent over several years. But at some point in their lives, Directors have invested enough time to develop (and maintain) at least eight Melaleuca customers. Percent of Status Annual Income Minimum Average Minimum Average Time to Achieve Status1 Business Personal Personal Total Total Builders Customers Customers Active Active Shortest Longest Average with This High Low Average Customers Customers Time Time Time Status Director I / II 83.9% $16,537 $100 $2,109 10 13 10 63 1 Mo. 120 Mo. 7 Mo. 41
    • Initial Leadership Status Leaders at these statuses have made a more serious effort at building a Melaleuca business. Those who have reached these leadership statuses have not only invested enough time to develop several customers, but they have also helped some of those customers start a business and become Marketing Executives. Those Marketing Executives have, in turn, referred additional customers who purchase Melaleuca products each month. Commissions are paid based on the development of customers and the development of leaders who help others reach their goals. Status Percent of Minimum Average Minimum Average Business Annual Income Time to Achieve Status1 Personal Personal Total Total Builders Customers Customers Active Active with This Customers Customers Shortest Longest Average High Low Average Status Time Time Time Director III 6.5% $26,456 $2,462 $6,902 11 27 37 168 1 Mo. 120 Mo. 14 Mo. Dir. IV / V 3.5% $29,967 $4,199 $11,960 13 35 84 281 1 Mo. 120 Mo. 19 Mo. Dir. VI / VII 1.4% $43,054 $9,479 $19,404 15 43 178 428 1 Mo. 120 Mo. 22 Mo. Dir. VIII / IX 0.8% $57,684 $12,046 $28,463 18 47 265 560 1 Mo. 120 Mo. 21 Mo. Advanced Leadership Status Those Marketing Executives who reach Senior or Executive Director status have shown substantial interest and dedication in building a Melaleuca business. While they may not work their business full-time, it is essential that they invest some time each month nurturing, training, and helping those in their marketing organization. Melaleuca advocates that Marketing Executives keep their full-time job and work their Melaleuca business in their spare time. However, some Executive Directors at the higher income levels do work their business close to full-time. Melaleuca strongly advocates that Marketing Executives do not quit their full-time job until their Melaleuca income far surpasses the income they receive from their full-time employer. Rather, they should add their Melaleuca income to their regular income, thereby making a substantial difference in their family finances. Status Percent of Minimum Average Minimum Average Business Annual Income Time to Achieve Status1 Personal Personal Total Total Builders Customers Customers Active Active with This Customers Customers Shortest Longest Average High Low Average Status Time Time Time Senior Dir.2 2.6% $233,902 $21,957 $60,187 20 66 350 1,057 1 Mo. 120 Mo. 21 Mo. Executive Dir.3 1.3% $616,923 $64,360 $158,949 20 97 1,074 2,654 4 Mo. 120 Mo. 26 Mo. Less than Corporate Dir. 4 0.1% $2,246,473 $745,812 $1,286,556 20 144 8,082 14,283 29 Mo. 120 Mo. 39 Mo.The above annual income statistics include all Melaleuca North American Marketing Executives who were active during all 12 months of the period ending December 2010 and performed theminimum activity required at each status level. The incomes stated include all commissions and bonuses actually paid during the period.For the purpose of these statistics, a Marketing Executive’s leadership or developmental level was calculated by taking the highest status achieved and maintained for at least five consecutivemonths. The information on this page is not necessarily representative of what any individual Marketing Executive will earn with this program. Any representation or guarantee of specificearnings would be misleading. Success with any business takes hard work, diligence, perseverance, and leadership. Success with Melaleuca will depend on how effectively a MarketingExecutive exercises those qualities.1 I ncludes all active Marketing Executives joining Melaleuca within the past 10 years.2 Includes statistics for Senior Director through Senior Director IX.34 Includes statistics for Executive Director through Executive Director IX. Includes statistics for Corporate Director and higher. 42
    • Enhancing the lives of those we touchby helping people reach their goals SM © 2011 Melaleuca, Inc. Printed in the USA Rev. 09/11U 102602180