2. 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
Anyone Can Be Successful…Anytime
1
3. 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
4. Melaleuca:
The Wellness Company ™
SS
LLNE FIN
AN
L WE CI
A
A
L
SIC
WE
Get Out
PHY
Live Longer,
LLN
of Debt and
Healthier, Secure Your
ESS
More Vibrant Financial
Lives Future
Achieve Balance, Make Our
PERS Freedom, and Homes and the
Peace of Mind in Environment
ESS
Your Personal and Cleaner, Safer
ON
Family Life Places
LN
AL
EL
EL
W
W
LN L
ES N TA
S M E
ENVIRON
3
5. A Different
Kind of
Company
Instead of paying millions to retailers
and advertisers, Melaleuca redirects
revenue from its product sales to the
average family and offers them the
opportunity for wealth without a large
investment or risk.
4
6. Melaleuca’s
GRoWTh
$850,000,000
$800,000,000
$750,000,000
RECoRD
$700,000,000
$650,000,000
$600,000,000
$550,000,000
$500,000,000
Since its beginning in 1985, annual
sales have grown to over $800 million. $450,000,000
Melaleuca’s 24-year proven track $400,000,000
record of success is unmatched! $350,000,000
$300,000,000
Each month, over 500,000 $250,000,000
households shop with
$200,000,000
Melaleuca, a testament
to the quality and value $150,000,000
of our products. $100,000,000
$50,000,000
$0
1985 1991 1997 2003 2008
5
7. Melaleuca’s
Success
Melaleuca is a recipient of
the esteemed Better Business
Bureau Torch Award, granted
Melaleuca appeared on Inc. magazine’s
only to select companies list of fastest-growing companies for 5
that prove a long history of consecutive years and earned a place
exemplary business practices.
on the prestigious Inc. 500 Hall of Fame.
6
8. 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
9. 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
8
10. Simply
Switch Stores
• No New Dollars Required
• Keep Your Budget Intact
Simply switch a portion of what you’re already spending at the
grocery store to Melaleuca, where you’ll find better, safer products.
9
11. With a Melaleuca business,
average families
hundreds of thousands of
are improving their lives.
The reason?
Our Superior
Products.
10
12. Welcome to a Simpler Way of Shopping—
over 300 Exclusive Products You Use Every Day
®
11
13. ™
CLEANERS
No other home cleaning products protect your home, family, and environment like EcoSense
SAFER SAFER SAFER
FOR YOUR HOME FOR THE EARTH FOR YOUR FAMILY
• Effective, naturally • Super-concentrated • No chlorine bleach
derived ingredients • No fillers • No ammonia
• No abrasives • No phosphates • No aerosols
• pH-balanced (non-alkaline) • No formaldehyde
12
14. Safer and More
Effective
MelaPower® 6x
The concentrated, pH-balanced
formula uses powerful, naturally derived
Diamond Brite® surfactants to wash away stubborn dirt
and stains without damaging clothing.
Patented formula with
Our concentration technology is patent
naturally derived enzymes
pending and exclusive to Melaleuca.
gets your dishes and silverware
shiny and spot-free without using
Our proprietary Rinse Guard™ agent
chlorine bleach, phosphates, or
actually keeps dirt from settling back
other harmful ingredients.
onto your clothes during the rinse cycle.
13
15. 6X
CONCENTRATED
=
MelaPower® 6X 6 Bottles of 2X Ultra Tide®
192 loads 192 loads total
$29.99 VS $61.74 * *Competitor product prices from
Albertsons.com, Portland, OR and
Kroger, Atlanta, GA March 11, 2009.
Prices may vary. Product names are
PREFERRED CUSTOMER COMPETITOR PRICE 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 $10.47* $5.69
PREFERRED CUSTOMER
VS $20.94*
COMPETITOR PRICE COMPETITOR PRICE 14
16. EPA-Approved to
Kill 99.9%
of Germs
with the Natural Power
of Thyme and Citric Acid
sol-U-Guard Botanical® 2x Concentrate
• Kills household germs like staph, E. coli, and rhinovirus—
the leading cause of the common cold
• Gentle enough to use around children and pets
• No chlorine bleach, ammonia, harsh fumes,
or harmful residue
• Available only at Melaleuca
2x concentrated to save you money
15
17. Caring for the
Environment Since 1985
Melaleuca is the world Our products are We don’t use We were green
leader in concentrated sourced from natural, phosphates, chlorine long before being
products and technology sustainable sources bleach, or ammonia green was popular
If every household used concentrated EcoSense™
products instead of grocery store brands, in 10 years
we would save almost 7 billion pounds of plastic. That
would be 78 billion fewer plastic bottles in our landfills!
Phosphates in our waterways cause excessive growth
of algae, deplete oxygen levels, and damage fragile
aquatic ecosystems.
16
18. Want More Energy
and Better Health?
FACT: 4 out of 5 adults are not eating their daily serving of fruits and vegetables.
• The minerals in other top-selling supplements have
been proven to crystallize during digestion, which
inhibits absorption
• The human body was made to absorb vitamins and
minerals from natural foods like fruits and vegetables
• The minerals in plants are bound to proteins and
fibers—making them easier for our bodies to absorb
• Oligofructose Complex™ 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 oligofructose Complex.*
*Based on percent solubility of copper, iron, manganese, and zinc at intestinal conditions.
17
19. 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, availability, or absorption.
For example, tests show that in order to get the same amount of Vitamin C or Copper, you’d have to take…
at least at least
1 Vitality Pack or ® 33 Centrum ®
or
15 One A Day®*
Daily Dose
The difference you’ll feel using the
Vitality Pack is so impressive, it’s
THE BOTTOM LiNE:
guaranteed. If after 90 days you Minerals found in other top-selling
don’t feel a marked difference in supplements crystallize when digested,
your health and energy, we’ll refund aren’t as absorbable, and destroy important
your money—no questions asked.
vitamins like C and E.
Oligofructose minerals found in the Vitality
Pack are up to 10 times more available for
absorption and protect antioxidant vitamins
5 times better.
18
*Comparison vs. One A Day Women’s
20. The World’s Leader
in Natural Heart PLATELET
fUNCTiON
Health solutions
CHOLEsTEROL
LDL
OxiDATiON
TRiGLYCERiDE
LEVELs ENDOTHELiAL
fUNCTiON
FACT: Cardiovascular health is the #1 health concern in North America. BLOOD
PREssURE
Phytomega® FiberWise™ ProStolic ® ProvexCV®
Naturally lowers LDL Reduces LDL oxidation,
Helps reduce LDL Naturally maintains
cholesterol while promotes healthy blood
cholesterol and promotes healthy blood pressure
maintaining healthy platelet activity and
a healthy digestive tract* with milk peptides*
triglyceride levels* endothelial function*
*These statements have not been evaluated by the Food & Drug Administration. 19
This product is not intended to diagnose, treat, cure, or prevent any disease.
21. 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!
20
22. ™
Beautiful hair
from Nature’s Salon
Silky Soft Skin
from head to Toe
Bath & Body
Essentials
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
21
23. Skin Care and Cosmetics
Exclusively at Melaleuca
Visible
Results
Natural Ingredients Proven Formulas
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
22
24. Complete First Aid
Antiseptic and herbal
ingredients naturally soothe
and help speed healing
Natural Dental Care
Exceptional dental care featuring
pure T40-C3® Melaleuca Oil
Skin Protection
Advanced dry skin, acne, and
sun care
Drugstore Essentials
Save up to 50% vs. major brands
Melaleuca oil is
well-known for
its soothing,
penetrating,
and antiseptic
healing properties 23
25. 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.*
24
26. Exclusive
Membership With your membership, save up to
at more than 70 online retailers 15%
Benefits
We leverage our large number of customers to negotiate these incredible savings—then pass them on to you.
.COM
Plus, save hundreds of dollars by
using additional Melaleuca services
with low, pre-negotiated rates 25
27. Value of Monthly Shopping
Become a Preferred Customer—spending
about $50 to $60 each month—and save
30% to 40% each time you shop!
YOUR DISCOUNTED
TOTAL PRICE OF MELALEUCA PREFERRED
CUSTOMER PRICE
Loyalty Shopping
GROCERY STORE BRANDS REGULAR PRICE
Dollars Make
$
99.97* $
79.98 $
55.33 Melaleuca Even
More Rewarding
With the Loyalty Shopping
Dollars program, you can
earn up to $100 in FREE
PRODUCTS when you shop
in your first five months!
After five months, you
can earn up to 10% back
THE VALUE Of CONCENTRATiON in LOYALTY SHOPPING
2 50 fl. oz. bottles of 2X Ultra Tide® = 64 loads 1 32 fl. oz. bottle of MelaPower® 6X = 64 loads
DOLLARS when you shop
5 bottles of Softsoap® = 500 uses 1 bottle of Melaleuca Liquid Soap = 500 uses
3 bottles of Formula 409® = 96 fl. oz. 1 bottle of Tough & Tender® makes 96 fl. oz. EARLY in any month.
*Competitor retail prices from Albertsons, Albertsons.com, Target, and
Drugstore.com as of March 12, 2009. Prices will vary. Product names are
trademarks of their respective owners.
26
28. Preferred Customer Membership
Preferred Customers agree to shop each month with Melaleuca
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 35 Product Points each month—
about $50 to $60 dollars redirected from
• Loyalty Shopping Dollars the grocery store
You can earn up to $100 in Loyalty Shopping Dollars
in your first 5 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 products, charge your method of payment,
• Savings on Everyday Services and protect your savings and other 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.
27
29. 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?
28
30. Anyone
Can Build a Successful
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
31. Marketing Executive
Your Household
1 7% 5
2 7% 25 Households
Others can also refer new customers and
place them in your organization. You can
revenue share on up to 30 customers in
your first two generations.
See Melaleuca Compensation Plan for more details. 30
32. Director
Is a person who refers 8 customers
and can now be paid residual income
through seven generations
Your Household
1 7% 5
2 7% 25 Households Refer 2 Customers
3 7% 125 Households
4 7% 625 Households Refer 4 Customers
5 7% 3,125 Households
Refer 8 customers
6 7% 15,625 Households and earn 7% on each
generation and up to 20%
7 7% 78,125 Households on all your personally
referred customers
Helping the Average Family:
Seven families benefit from every Melaleuca purchase
See Melaleuca Compensation Plan for more details. 31
33. Getting Started: A Part-Time Referral Business
DIRECTOR PLUS
PERSONALLY POTENTIAL PLUS 2008 MONTHLY
POTENTIAL
IMPORTANT STEPS STATUS REFERRED MONTHLY
MONTHLY BONUS
ONE-TIME or PACESETTER INCOME
ACHIEVED CUSTOMERS RESIDUAL INCOME BONUS STATISTICS
POOL
Become a Director by Director 8 $500 – $100 OR $200 $180 AVG.
Personally Referring
8 Customers II 10 $750 – $200 OR $400 $1,330 HIGH
Develop 1 $603 AVG.
Personal Director
III 11 $1,000 $1,000 $300 OR $600
$1,710 HIGH
IV 12 $1,500 $1,500 $400 OR $800 $1,010 AVG.
Total of 2
Personal Directors $2,410 HIGH
V 13 $2,000 $2,000 $500 OR $1,000
VI 14 $2,500 $2,500 $600 OR $1,200 $1,560 AVG.
Total of 3
Personal Directors $3,610 HIGH
VII 15 $3,000 $3,000 $700 OR $1,400
VIII 16 $3,500 $3,500 $800 OR $1,600 $2,280 AVG.
Total of 4
Personal Directors $5,460 HIGH
IX 18 $4,000 $4,000 $1,000 OR $2,000
For illustration purposes only. Refer to Melaleuca Compensation Plan and 2008 Annual Income Statistics for details. 32
34. Residual Income to Last a Lifetime
PERSONAL POTENTIAL MONTHLY ADVANCEMENT
STATUS DIRECTORS BONUS
INCOME BONUSES (One-Time or Pacesetter)
BONUS POOL TYPICALLY
Senior
Director 5
DIRECTORS
Unlimited
$10,000
CAR BONUS
$2,000
TO
Through Senior
Director IX $400 $10,000
BONUS POOL TYPICALLY
10
$20,000 $10,000
Executive Unlimited TO
Director CAR BONUS
Through Executive DIRECTORS
$1,000 $20,000
Director IX
TYPICALLY
BONUS POOL
Unlimited $50,000 TO
5
$20,000
Corporate $100,000
PLUS AN EXTRA 2%
Director ON ALL CUSTOMER CAR BONUS PLUS A ONE-TIME
EXECUTIVE DIRECTORS ADVANCEMENT BONUS
Through Corporate PURCHASES $1,000
Director IX
$100,000
For illustration purposes only. Refer to Melaleuca Compensation Plan and 2008 Annual Income Statistics for details. 33
35. 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 Earn up to $500–$5,000 each Each Week
up to 10% in Loyalty Shopping month, depending on your time Earn up to $5,000–$20,000 or
Dollars. Refer a friend from time and consistent effort. even more each month with a
to time if you would like. continued, consistent effort.
Senior Director $55,588 Avg. $4,630/month
Executive Director $148,542 Avg. $12,370/month
Corporate Director $1,209,356 Avg. $100,770/month
Potential earnings are not guaranteed and will vary. 34
Please see the Melaleuca Compensation Plan and 2008 Annual Income Statistics for details.
36. 3 Simple Steps to Get
Started as a Customer
STEP 1: Setaup your account and enroll
as Preferred Customer
STEP 2: Preselect your Backup Order
STEP 3: Place your first product order
There’s No Risk…
You can cancel your membership at any time.*
* Notify Melaleuca in writing by the 25th day of any month. See Melaleuca Customer Agreement for more details.
35
37. Value and Career Pack product assortments are subject to change without notice. Career Pack shown.
Getting Your Business 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
38. 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.
39. 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.