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Delivering Wellness 2010

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The Greener Healthier Company. For more information contact me.

The Greener Healthier Company. For more information contact me.

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Delivering Wellness 2010 Delivering Wellness 2010 Presentation Transcript

  • DELIVERING W 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: The Wellness Company ® SS Fin LnE An EL CiA L W LW A SiC Get Out EL Live Longer, PHY of Debt and LnE Healthier, Secure Your SS More Vibrant Financial Lives Future Achieve Balance, Make Our Freedom, and Homes and the PE R S Peace of Mind in Environment E SS Your Personal and Cleaner, Safer On Family Life Places Ln AL EL W W LL AL E nE SS E nT nM E n Vi R O 3
  • Melaleuca: A Different Kind of Company CONSUMER DIRECT MARKETING — ® TRADITIONAL BUSINESS MODEL MELALEUCA’S PARTNERSHIP MODEL T TO THE CUST EC OM iR ER D Each entity Manufacturers takes a Procter & Gamble portion of the Melaleuca Colgate-Palmolive Manufactures Johnson & Johnson revenues Customer and Retail Ships Direct Advertisers Distribution TV Wal-Mart Radio Safeway Print Media OR Kroger W AL S DO F MO RR UTH R EFE The Result? Customer The customer is • HIGHER QUALITY PRODUCTS outside of the • SAVINGS AND BETTER VALUE partnership • REVENUE SHARING 4
  • Melaleuca’s $850,000,000 Growth Record $800,000,000 $750,000,000 $700,000,000 $650,000,000 $600,000,000 Since its beginning in 1985, annual sales have grown to over $800 million. Melaleuca’s 24-year $550,000,000 proven track record of success is unmatched! $500,000,000 $450,000,000 Each month, over 500,000 households $400,000,000 shop with Melaleuca, a testament to the quality and value $350,000,000 of our products. $300,000,000 $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 5
  • Melaleuca’s Success Melaleuca is a recipient of the esteemed Better Business Bureau Torch Award, granted only to select companies that prove a long history of exemplary business practices. To see the numerous other awards Melaleuca has received over the years, go Melaleuca appeared on Inc. magazine’s to MelaleucaAwards.com. list of fastest-growing companies for 5 consecutive years and earned a place in the prestigious inc. 500 Hall of Fame. 6
  • What Melaleuca Does… We Deliver Wellness ® We refer customers to shop with Melaleuca. They shop direct by phone or online. Approximately 95% of our customers who shop this month will shop again next month. Each time they shop, we earn a commission. The result? We share in the revenue and earn ongoing commissions called residual income. It’s called Consumer Direct Marketing, ® and only Melaleuca does it. 7
  • Simply Switch Stores! • No New Dollars Required • Reduce Your Monthly Budget Simply switch some of your shopping to Melaleuca, where you’ll find better, safer products. 8
  • Welcome to a Simpler Way of Shopping— Over 300 Exclusive Products You Use Every Day 9
  • CLEAnERS EcoSense: The Safety You Want, the Cleaning Power You Demand SAFER SAFER SAFER FOR YOUR FAMILY FOR YOUR HOME FOR THE EARTH • No chlorine bleach • Effective, naturally • Super-concentrated • No ammonia derived ingredients • No fillers • No aerosols • No abrasives • No phosphates • No formaldehyde • pH-balanced (non-alkaline) 10
  • EPA-Approved to Kill 99.9% of Germs with the Natural Power of the Herb Thyme Sol-U-Guard Botanical® Disinfectant • Kills household germs like staph, E. coli, and the H1N1 virus • Kills germs on the surfaces we eat from and touch • No chlorine bleach, ammonia, harsh fumes, or harmful residue • Gentle enough to use around children, pets, and food • Available only at Melaleuca 2x concentrated to save you money 11
  • Safer and More Effective MelaPower® 6x The concentrated, pH-balanced formula washes away stubborn dirt and stains Diamond Brite® but is as gentle to clothes as tap water. Patented formula gets your Our concentration technology is patent- dishes and silverware shiny and pending and exclusive to Melaleuca. spot-free without using chlorine bleach, phosphates, or other Our proprietary Rinse Guard™ agent harmful ingredients. actually keeps dirt from settling back onto your clothes during the rinse cycle. 12
  • 6X COnCEnTRATED = MelaPower® 6x 3 Bottles of 2X Ultra Tide® 96 loads 96 loads total $15.99 PREFERRED CUSTOMER VS $29.37* COMPETiTOR PRiCE *Competitor product prices from Albertsons.com, Las Vegas, NV and Albertons.com, Seattle, WA, September 28, 2009. Prices may vary. Product names are trademarks of their respective owners. Concentrated Means Less Waste and More Savings = = Clear Power® 3 Bottles of Windex® Tub & Tile™ 6 Bottles of Lime-A-Way® Makes 96 fl. oz. 96 fl. oz. total Makes 96 fl. oz. 96 fl. oz. total $5.69 PREFERRED CUSTOMER VS $13.26* $5.69 PREFERRED CUSTOMER VS $22.74* 13 COMPETiTOR PRiCE COMPETiTOR PRiCE
  • Caring for the Environment Since 1985 if every household in north America used concentrated EcoSense™ products instead of grocery store brands, in 10 years we would save almost 7 billion pounds of plastic. if that plastic were turned into laundry baskets, it would circle the earth an astonishing 71 times! 14
  • Want More Energy and Better Health? THE AnSWER: Oligo ! ™ • Minerals in plants are bound to proteins and fibers— making them easier for our bodies to absorb • However, the minerals in other top-selling supplements have been proven to crystallize during digestion, which inhibits absorption • Just like nature, Oligofructose prebinds minerals to proteins and oligofructose fibers, similar to how they exist in plants and foods THE RESULT? No other mineral form is more absorbable than Melaleuca’s Oligo.* *Based on percent solubility of copper, iron, manganese, and zinc at intestinal conditions. 15
  • 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: Oligofructose minerals found in the If after 90 days you don’t feel a Vitality Pack are up to 10 times more marked difference in your health absorbable and protect antioxidant and energy, we’ll refund your vitamins 5 times better. money—no questions asked. 16 *Comparison vs. One A Day Women’s
  • The World’s Leader in Natural Heart PLATELET fUNCTION Health Solutions CHOLESTEROL LDL OxIDATION TRIGLYCERIDE LEVELS ENDOTHELIAL fUNCTION BLOOD FACT: Cardiovascular health is the #1 health concern in north America. PRESSURE ProvexCV® FiberWise™ Phytomega® Reduces LDL oxidation and naturally lowers LDL Helps reduce LDL promotes healthy blood cholesterol, maintains healthy cholesterol and promotes pressure, platelet activity, triglyceride levels, supports a healthy digestive tract* and endothelial function* proper heart function* *These statements have not been evaluated by the Food & Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease. 17
  • Exercise and Weight Loss Products That Work! FACTS: Over 60% of American adults are overweight. Weight loss and exercise is a $43 billion industry. Sustain® Sport Attain® Access® Simply Fit™ Provides hydration and Reduces cravings to support Patented nutrition that 10 organic whole grains endurance with twice the healthy weight loss efforts turns fat into fuel for exercise and seeds and no electrolytes and fewer calories with natural CraveBlocker,® with half the calories of trans fat—a genuinely than Original Gatorade® drinks not found in SlimFast® Original PowerBar® healthy snack! 18
  • Beautiful Hair from Nature’s Salon Silky Soft Skin from Head to Toe Products No Family Should Be Without Exclusively for Men Envia Shampoo and Conditioner • Patented Lipid Replenishing System adds shine, strength, and moisture to your hair Products for strong, • Patented UV Protection System prevents healthy kids color-fading, split ends, and UV damage • Delivers salon-quality results without salon prices 19
  • Skin Care and Cosmetics Antiaging | Skin Care | Color Cosmetics | Visible Results | Exclusively at Melaleuca Necessities Skin Care Set (Cleanser, Toner, Moisturizer) • Protects your skin from UV damage • Nourishes skin with vitamins and botanicals • Helps restore skin’s firmness and tone with peptides 20
  • Drugstore Essentials Save up to 50% vs. major brands* VS. $4.09 $6.49* PREFERRED CUSTOMER COMPETiTOR PRiCE Natural Dental Care Exceptional 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, *Competitor product prices from Walgreens.com as of November 30, 2009. and antiseptic Prices may vary. Product names are trademarks of their respective owners. healing properties 21
  • Do You or Someone Clinically proven to w ork faster, better, and last You Know Suffer from longer than Eucerin ! ® Severely Dry Skin? REnEW™ 7x as effective vs. Eucerin on associated with: moisture retention Eczema 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.* 22
  • Exclusive Membership With your Preferred Customer membership, you can save up to 15% at more than Benefits 650 online retailers. We leverage our large number of customers to negotiate incredible savings—then pass them on to you. .COM Plus, save hundreds of dollars by using additional Melaleuca services with low, pre-negotiated rates 23
  • Exclusive $ 20 MONTH Membership $ 20 2 The Gold Bar ® Sol-U-Guard Botanical® 2x Disinfectant Eyewear Refirming Cream Simply Fit™ Crackers Renew™ intensive Skin Therapy Sustain® Sport Packets CounterAct ® iB Access® Performance Ba Benefits MONTH 3 Tough & Tender® Wipes Vitality Pack® (Women, Men, Prenatal, or 50+) Envia Nature’s Salon™ Shampo o & Conditioner Simply Fit™ Cookies Whitening Tooth Polish $ 20 Sol-U-Mel® Stain Remover Extra-Strength Pain-A-Trate® MONTH 4 PreSpot™ 4x Concentrated Laundry Stain Remover MelaPower® 6x Laundry Deterge nt Body Satin™ Body Lotion Body Satin™ Body Wash Sun Shades™ Lip Balm $ 20 FiberWise® Breakfast Bars MelaGel® Loyalty Shopping Dollars MONTH 5 We’re so confident you’ll love Diamond Brite® Automatic Dishwasher Detergent Timeless Age-Defying Serum FiberWise® Drink Mix Clear Defense® Hand Sanitize r Phytomega® $ 20 Antibacterial Liquid Soap FiberWise™ Cereal our products, we give you $100 MONTH in free products during your 6 or first 6 months. Tub & Tile™ Bathroom Cleaner MelaSoft® Fabric Softener Attain® Shakes Replenex® T36-C5® Melaleuca Oil Clear Power ® Glass Cleaner Attain® Bars Every month thereafter, you can earn 10% back in Loyalty Shopping Dollars each time you shop. 24
  • Value of Preferred Customer Membership Become a Preferred Customer—switch about $50 to $60 each month to Melaleuca—and save 30% to 40% each time you shop! TOTAL PRiCE OF MELALEUCA PRICE YOU PAY AS A GROCERY STORE BRAnDS REGULAR PRICE PREFERRED CUSTOMER YOU SAVE $ 84 .89* $ 76 .49 $ 53 .15 $ 23.34 3 50 fl. oz. bottles of 2X Ultra Tide® = 96 loads THE VALUE Of CONCENTRATION 6 bottles of Lime-A-Way® = 96 fl. oz. 1 48 fl. oz. bottle of MelaPower® 6x = 96 loads 1 bottle each of GNC Women’s Ultra Mega® and Calcium Plus® 1 bottle of Tub & Tile™ makes 96 fl. oz. 1 bottle of Eucerin® Original lotion 8.4 fl. oz. 1 Vitality Pack® (Multivitamin & Mineral + Calcium Complete) 1 bottle of Renew™ Intensive Skin Therapy Lotion 8 fl. oz. *Competitor retail prices from Albertsons, Albertsons.com, Target, and Drugstore.com as of September 23, 2009. Prices will vary. Product names are trademarks of their respective owners. 25
  • Preferred Customer Membership WE PROMiSE: YOU AGREE TO: • Preferred Customer Pricing 3 Become a Preferred Customer 30%–40% off the regular price $29 membership fee* • Exceptional Products Delivered 3 Simply Switch Stores and Shop Conveniently to Your Door with Melaleuca Each Month Purchase at least 35 Product Points each month—about $50 to $60 dollars redirected • Loyalty Shopping Dollars from the grocery store You can earn up to $100 Loyalty Shopping Dollars in your first 6 months and up to 10% thereafter* 3 Preselect Your Backup Order Protect your Preferred Customer benefits • Save up to 15% at Online Retailers with Melaleuca Marketplace If you forget to shop during the month, we’ll send your preselected order, conveniently charge your account, • Savings on Everyday Services and protect your membership discounts and benefits. • No Risk—You Can Cancel Your Membership at Any Time On average our customers order 100% satisfaction guaranteed* 48 PRODUCT POINTS per month *See Melaleuca Customer Agreement for more details. 26
  • You Can See Why Being a Preferred Customer Makes So Much Sense… How would an extra $ 500, 1,000 or 10,000 $ $ per month improve your life? 27
  • At Melaleuca, Revenue Sharing NO Large Investment Just Makes Sense NO Carrying Inventory NO Taking Orders and Making Deliveries NO Billing and Collections NO Pressuring Customers to Purchase NO Repeat Sales Presentations NO RISk Simply Switch Stores and Save 28
  • 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% Earn 7% each time customers you each time customers in your organization refer shop at Melaleuca who are referred by others shop at Melaleuca See Melaleuca Compensation Plan for more details. 29
  • THE KEY to Melaleuca’s Compensation Plan 1. PERSOnALLY REFER CUSTOMERS 2. DEVELOP DiRECTORS A Director is someone who has personally referred eight or more customers 30
  • Become a Director Refer 8 Customers Who Shop During the Month Pacesetter non-Pacesetter Average Earnings in the First Month $435 $278 as a Director* Ongoing Average Monthly Earnings $168 $168 as a Director Average earnings of those who $614* reach Director in their first month: * Based on 2009 Melaleuca Compensation Plan and 2008 Annual Income Statistics. 31
  • Become a Director ii Personally Refer 2 More Customers and… With the Help of Others, Add 10 More Customers to Your Business Pacesetter non-Pacesetter Average Earnings in the First Month $907 $482 as a Director ii* Ongoing Average Monthly Earnings $314 $314 as a Director ii * Includes Director II Pacesetter or Advancement Bonus paid over 3 months. Based on 2009 Melaleuca Compensation Plan and 2008 Annual Income Statistics. 32
  • Become a Director iii Team Up—Help a Personal Enrollee Become a Director Pacesetter non-Pacesetter Average Earnings in the First Month $1,757 $988 as a Director iii* Ongoing Average Monthly Earnings $592 $592 as a Director iii * Includes Director II Pacesetter or Advancement Bonus paid over 3 months. Based on 2009 Melaleuca Compensation Plan and 2008 Annual Income Statistics. 33
  • Residual Income to Last a Lifetime PERSOnAL POTEnTiAL ADVAnCEMEnT AVERAGE STATUS MOnTHLY BONUS DiRECTORS BONUSES (One-Time or Pacesetter) ANNUAL INCOME BONUS POOL TYPiCALLY 5 Senior $10,000 $2,000 $55,588 Director TO Through Senior CAR BONUS $4,630 DiRECTORS Director iX $400 $10,000 Per Month BONUS POOL TYPiCALLY Executive 10 $20,000 $10,000 $148,542 Director TO Through Executive CAR BONUS $12,370 Director iX DiRECTORS $1,000 $20,000 Per Month TYPiCALLY BONUS POOL $50,000 TO Corporate Director Through Corporate 5 EXECUTIVE DIRECTORS $20,000 CAR BONUS $100,000 PLUS A ONE-TIME $1,209,356 $100,770 ADVANCEMENT BONUS Per Month Director iX $1,000 $100,000 Refer to Melaleuca Compensation Plan and 2008 Annual Income Statistics for details. 34
  • How Can Melaleuca Enhance Your Life? CATEGORY 1 CATEGORY 2 CATEGORY 3 PART-TiME SiGniFiCAnT PREFERRED CUSTOMER REFERRAL BUSINESS REFERRAL BUSINESS Shop and Save Invest 5–15 Put In a Serious 30%–40% Hours a Week Effort—20+ Hours Save time and money, and earn Begin today and earn up to Each Week up to 10% in Loyalty Shopping $500–$5,000 each month, * Earn up to $5,000–$20,000 or even Dollars. Refer a friend from time depending on your time and more each month* by teaming up to time if you would like. consistent effort. and getting 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: Place your first product order * Potential earnings may vary. Includes Director II Pacesetter or Advancement Bonus paid over 3 months. 35 Based on 2009 Melaleuca Compensation Plan and 2008 Annual Income Statistics.
  • Value and Career Pack product assortments are subject to change without notice. Career Pack shown. Getting Started the Right Way Save an Extra 30% and Qualify for Pacesetter Bonuses Value Pack Career Pack Pacesetter Pack Save 30% off the Save 30% off the with 10 Membership Kits Preferred Customer Price Preferred Customer Price Save an Extra $50 Only $199 Only $299 36
  • 2008 Annual Income Statistics Customers The majority (more than 60% ) 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 29% 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. Active Percent Annual Income Minimum Average Minimum Average Time to Achieve Status1 Executive at This Personal Personal Total Total Status Status Customers Customers Active Active Shortest Longest Average High Low Average Customers Customers Time Time Time Mkt. Executive 73.8% $1,428 $24 $87 0 1 0 4 1 Mo. 120 Mo. 3 Mo. Mkt. Exec. II 15.3% $2,383 $24 $221 2 2 2 10 1 Mo. 120 Mo. 6 Mo. Mkt. Exec. III 10.9% $7,293 $64 $561 4 5 4 22 1 Mo. 120 Mo. 5 Mo. Developmental Status Only 1 out of 9 customers ( 11% ) 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. Active Percent of Annual Income Minimum Average Minimum Average Time to Achieve Status1 Executive Business Personal Personal Total Total Status Builders with Customers Customers Active Active Shortest Longest Average This Status High Low Average Customers Customers Time Time Time Director I/II 83.7% $16,007 $70 $2,250 10 14 10 65 1 Mo. 120 Mo. 7 Mo.
  • 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. Active Percent of Minimum Average Minimum Average Business Annual Income Time to Achieve Status1 Executive Personal Personal Total Total Status Builders Customers Customers Active Active with This Customers Customers Shortest Longest Average High Low Average Status Time Time Time Dir. III 6.2% $20,622 $1,967 $7,239 11 29 33 172 1 Mo. 120 Mo. 14 Mo. Dir. IV / V 3.6% $29,005 $5,013 $12,087 13 36 94 294 1 Mo. 120 Mo. 19 Mo. Dir. VI / VII 1.3% $43,381 $8,701 $18,780 15 46 201 406 1 Mo. 120 Mo. 21 Mo. Dir. VIII / IX 0.8% $65,553 $12,810 $27,437 18 50 303 618 1 Mo. 120 Mo. 22 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. Active Percent of Minimum Average Minimum Average Business Annual Income Time to Achieve Status1 Executive Personal Personal Total Total Status Builders Customers Customers Active Active with This Customers Customers Shortest Longest Average High Low Average Status Time Time Time Senior Dir.2 2.8% $175,844 $22,177 $55,588 20 65 369 971 1 Mo. 120 Mo. 22 Mo. Executive Dir.3 1.5% $591,424 $39,248 $148,542 20 89 853 2,643 4 Mo. 120 Mo. 24 Mo. Less than Corporate Dir.4 0.1% $2,176,348 $559,043 $1,209,356 20 113 7,832 12,915 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 2008 and performed the minimum 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 consecutive months. 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 specific earnings would be misleading. Success with any business takes hard work, diligence, perseverance, and leadership. Success with Melaleuca will depend on how effectively a Marketing Executive exercises those qualities. 1 Includes all active Marketing Executives joining Melaleuca within the past 10 years. 2 Includes statistics for Senior Director through Senior Director IX. 3 Includes statistics for all positions of Executive Director through Executive Director IX. 4 Includes statistics for positions of Corporate Director and higher.
  • Enhancing the lives of those we touch by helping people reach their goals SM © 2010 Melaleuca, Inc. Printed in the USA Rev. 01/10U 101802180